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Cairo hotels continue recovery as rates slide in Dubai

HotStats report shows steady increase in Egyptian capital bookings, while oil prices have affected Dubai occupancy
04/03/2016

Pictured: Cairo hoteliers have started 2016 on a good foot, with occupancy up 5 per cent in January

Cairo hotels have continued their recovery, recording a 5 per cent increase in occupancy in January, following a 'relatively stable' 2015.


In the latest Middle East and North Africa Chain Hotels report from HotStats, hotel occupancy in the Egyptian capital has continued recovering from its tumultuous year in 2014, reaching 61 per cent in January 2016. The figure is almost double the 33.2 per cent occupancy experienced two years prior, in January 2014.


Average rates remained stable in year on year figures, at US$107 (£75). 


Meanwhile, weaker oil prices have affected Dubai hotels, who recorded declines in food and beverage (-0.9 per cent) and conference banqueting (-4.5 per cent) in the same month. The report highlighted an oversupply in the upscale market as average rates fell by 10 per cent from January 2015's figures, to US $312 (£229).


Authors added: "In addition to an oversupply in the luxury sector, there was significant growth in development in the mid-market segment as Dubai attempts to increase its appeal to more price sensitive travellers. The opening of more than 1,000 hotel rooms in the mid-market sector in 2015 has, unsurprisingly, put downward pressure on average room rates at upscale hotels."


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