Colliers International releases forecast on hotel performance in key cities across the Gulf region
Hotels on Palm Jumeirah, the world famous man-made island in Dubai, are set to see the highest daily room rates in the Middle East and North Africa region this year.
According to new research from Colliers International, hoteliers on the Palm, which includes Atlantis, are set to demand $400 average daily rates (ADR) over the year, far higher than Jeddah, the next highest, which is expected to charge ADR of $276.
Palm-based hotels are also forecast to see occupancy of 80 percent during 2019 while revenue per available room (RevPAR) is seen averaging $320, down 5 percent compared to 2018, the Colliers data revealed.
It also showed that hotels in Dubai Marina/Jumeirah Beach Residence are predicted to have the highest occupancy rates in the MENA region this year, with 84 percent while RevPAR at $194 is set to fall 7 percent compared to last year.
Elsewhere in Dubai, hoteliers in Dubai Creek/Festival City hotels are expected to see 82 percent occupancy and a 6 percent drop in RevPAR to $133 while properties in Sheikh Zayed Road/Dubai International Financial Centre are likely to see 77 percent occupancy rates and RevPAR of $110, down 8 percent.
In Abu Dhabi, beach hotels are forecast to see 68 percent occupancy and a 5 percent rise in RevPAR to $151 while city hoteliers are set to post 74 percent occupancy and $73 RevPAR, up 2 percent.
In Saudi Arabia, the holy city of Makkah is forecast to see the highest occupancy rate of 64 percent, followed by Madinah (61 percent), Jeddah (59 percent) and Riyadh (57 percent).
However, in RevPAR terms, Jeddah hotels are set to record the highest levels at $163, followed by Makkah, Riyadh and Madinah.
In the Northern Emirates, Ras Al Khaimah hoteliers are expected to see 67 percent occupancy and a 2 percent dip in RevPAR to $108 while hotels in Sharjah are set to post 68 percent occupancy and $46 RevPAR, down 7 percent.
In Oman, Colliers International said Muscat hotels expect to see 58 percent occupancy during this year while RevPAR is set to remain at $95.
In Bahrain, the report said hotels in Manama are likely to post 55 percent occupancy in 2019, with RevPAR rising 4 percent to $85 and in Kuwait City, hoteliers are expecting 51 percent occupancy and $115 RevPAR, down 5 percent.
Earlier this week, Dubai said visitor numbers increased by two percent in the first quarter of this year, following a series of successful marketing campaigns and initiatives.
The 4.75 million international overnight visitors in the first three months of 2019 marks a pick up from a stable 2018 performance at saw an increase of 0.8 per cent year-on-year.
India was again the largest source market for Dubai, followed by Saudi Arabia and United Kingdom.