Qatar’s hospitality market painted a rosy picture with Doha’s hotel rooms’ yield gaining 37.5% and 27% during August and September 2014, according to Ernst & Young (EY).
This was mainly due to an increase in average occupancy from 46% in August 2013 to 61% in August 2014, which was the result of GCC (Gulf Co-operation Council) nationals arriving in Doha for the Eid holidays, EY said in its Middle East Hotel Benchmark Survey said.
Across September 2014, occupancy in Doha rose from 59% in September 2013 to 74% in September 2014, it found.
Elsewhere in the GCC; EY found that hotels in Manama (Bahrain) witnessed an increase in occupancy of 19% during August 2014, when compared to the same period last year. In September 2014, the upward trend in occupancy continued, increasing by 8% year-on-year.
The UAE’s hospitality market witnessed a growth in occupancy and ADR (average daily rate) through August and September 2014. Compared to the same months last year Abu Dhabi’s hospitality market witnessed an increase in RevPAR (revenue per available room) of 4% and 6.8% during August and September respectively. This was contributed by an increase in occupancy due to conventions in the city over the respective months.
Dubai’s overall hospitality market recorded a drop in ADR in August and September 2014, compared to same months in 2013. The ADR dropped from $213 in August 2013 to $195 in August 2014. Average occupancy jumped month-on-month from July 2014 by 27.5 percentage points, an increase due to the Dubai Summer Surprises Festival which commenced on August 2, 2014 and ended on September 5 compared to the event occurring in July in 2013.
September also recorded a drop in ADR in terms of Dubai’s overall hospitality market, from $217 in September 2013 to $201 in September 2014. However, average occupancy witnessed a slight increase of 2.2% percentage points during the same period last year.
Medina witnessed very strong growth in August and September 2014, with occupancy increasing by 12% Medina and 17% percentage points respectively. In September 2014, Medina recorded an increase in ADR from $186 in September 2013 to $258 in September 2014, resulting in a rise of 79.4% in RevPAR during the same period. This was due to the fact that many pilgrims arrive in Saudi Arabia prior to performing Haj and visit the unique virtues of the city.
Observing that the Middle East and North Africa’s hospitality industry recovered rapidly in August and September; EY said, “We expect this growth to continue through 2014 and into next year. In the final months of the year, we expect further increases in overall occupancy rates, with the pleasant weather attracting more tourists, alongside the seasonal increase in events and conferences in the region.”
