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Tue 3 Dec 2019 11:17 AM

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New airport terminal boosts hotel rates, occupancy in Jeddah

STR analysts say 30% demand growth was boosted by the opening of the King Abdul Aziz International Airport Terminal 1

New airport terminal boosts hotel rates, occupancy in Jeddah

King Abdul Aziz International Airport Terminal 1.

The opening of a new airport terminal in Jeddah helped hoteliers as demand for rooms rose by more than 30 percent in October compared to the same period last year.

According to new figures from analysts STR, Jeddah's hospitality market registered a double-digit increase in occupancy - up 23.9 percent to 48.1 percent - but the absolute level in the metric was the second-lowest for an October since 2001.

STR data also showed that Jeddah hoteliers posteed a 14.9 percent increase in average daily rates (ADR) in October to SR778.34 while revenue per available room (RevPAR) soared by 42.4 percent to SR374.69 compared to October 2018.

STR analysts, in announcing a 30 percent rise in demand, said: "Helping that growth was the opening of the King Abdul Aziz International Airport Terminal 1 and an increase in the number of international flights in the market."

For the wider Middle East region, STR announced a 6.5 percent increase in occupancy to 67.6 percent while ADR fell 3.9 percent to $143.62 and RevPAR rose by 2.3 percent to $97.07 compared to the year-earlier period.

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