Political uncertainty and continued unrest in Egypt has seen
the country record the largest decline in hotel performance for 2011, according
to TRI Hospitality Consulting’s latest HotStats survey, which looked at six
cities in the Arab peninsula.
Cairo had the largest downturn in occupancy for December
with just 36.3 per cent of rooms hired – down 37.1 per cent on the previous
year. Occupancy and average room rate (ARR) for the full year stood at 38.3
per cent and $121 (£76) respectively, and total revenue per available room
(TRevPAR) and gross operating profit Per Available Room (GOPPAR) for the period
were down to 39.8 per cent.
Managing director of TRI Hospitality in Dubai,
Peter Goddard, said: “A strong recovery in hotel demand is likely to be difficult
as long as the risk of sporadic violence such as the latest episode in Port Said exist.”
Business decline was not just felt by the more politically
active cities; Sharm El Sheikh recorded a full-year drop of 19.3 per cent ARR, a
48.5 per cent dip in revenue per available room (RevPAR), TrevPAR dropped by
44.6 per cent, and GOPPAR fell a staggering 64.2 per cent.
The highest ARR and GOPPAR for both December and the full
year was achieved by Riyadh,
with the city posting $261.89 (£165) ARR and $138 (£87) GOPPAR, as well as achieving a
4.6 per cent growth during the year.