Email the editor

Middle East and North Africa hotel rates fall 13 per cent

HotStats says low demand levels are forcing hoteliers to discount rates in an attempt to boost revenues

Pictured: Muscat hotel rates have been falling

Hotel rates in the Middle East and North Africa have fallen by 12.7 per cent year-on-year, HotStats has revealed.

While hotels in the region recorded a 1 per cent increase in room occupancy in July to 60.4 per cent, it was at the expense of a 12.7 per cent drop in achieved average room rate to $141 (£108). In its quarterly MENA chain hotels review, HotStats said low demand levels were forcing hoteliers to discount rates in an attempt to boost revenues.

Pablo Alonso, CEO of HotStats, said: “The poor profit conversion this month will be unfamiliar to hoteliers in the Middle East & Africa who have become accustomed to recording punchy bottom line performance.

“However, much to the disappointment of hotel owners and operators in the region, the challenging market conditions are likely to continue in the short term. This is not only due to the laboured recovery of the oil industry, but many of the new hotel developments which were either late in the planning stages or had already broken ground when the crisis hit, are now coming to fruition.”

In Muscat, additions to hotel supply in the Omani capital - including the three-star 152-room Al Irfan International Hotel, 120-room Muttrah Corniche and four-star 215-room Sundus Rotana - have put further pressure on hotel performance.

Pablo said: “As in other locations across the region, it is noteworthy that additions to supply in Muscat are primarily in the mid-market segment, as these destinations look to broaden their appeal to leisure visitors. However, this is likely to not only dilute demand levels but will put real pressure on room rates at the upscale hotels polled in the HotStats sample.”

Despite political demonstrations and disruption in the city, hotels in Amman still saw a 7.8 per cent increase in occupancy to 60.8 per cent, which was coupled with a 6.9 per cent fall in room rates to $144 (£111).

Facebook Share Twitter Share LinkeIn Share