By Santhosh V Perumal/Business Reporter
A quick expansion in occupancy helped Doha’s hotels report a strong-double-digit increase in the rooms’ yield in the first 11 months of 2014; indicating vibrancy in the Qatar’s hospitality industry vis-à-vis not that rosy picture elsewhere in the Gulf region, according to Ernst and Young (EY).
Occupancy in Doha hotels rose to 71% year-to-date ended November 2014 from 68% in the year-ago period, EY said in its Middle East Hotel Benchmark Survey.
The surge in occupancy and 0.9% increase in the average room rate to $234 translated as a healthy 14.2% in rooms yield to $168 in January-November 2014.
In November alone, Doha hotels’ rooms’ yield soared 23.2% year-on-year to $204 owing to 12% increase in average room rate to $247 and 7% in occupancy to 82%.
Elsewhere in the GCC; EY found that hotels in Manama (Bahrain) witnessed 13.4% jump in rooms’ yield to $99 on the back of 6% rise in occupancy to 48%; even as average room rate fell 1.2% to $203 year-to-date in November. In the case of Saudi Arabia, Riyadh witnessed 12.7% expansion in hotel rooms’ yield to $143 owing to 9% jump in occupancy 66%. Average room rate, otherwise, declined 2.4% to $214.
Madina saw its hotel room’ yield gain 8.5% to $144 on the back of 11% surge in occupancy to 75%; while the average room rate shrank 6.4% to $191.
Jeddah witnessed 7.6% gain in hotel rooms’ yield to $210 as there was 9.6% increase in the average room rate to $274; whereas occupancy fell 2% to 76%.
An 18% plunge in average room rate to $221 brought with it a 14.1% decline in Makkah hotel rooms’ yield to $133 despite 3% jump in occupancy to 60%.
Kuwait also saw its hotel rooms’ yield drop 11.5% to $146 on the back of 11% fall in occupancy to 48%; even as average room rate increased 7.8% to $299.
The UAE’s hospitality industry rather witnessed mixed performance with Abu Dhabi reporting 3% fall in hotel rooms’ yield to $154 as average room rates shrank 4.5% to $197 despite 1% rise in occupancy to 78%.
Dubai City saw its hotel rooms’ yield tank 3.1% to $162 on 3% fall in occupancy to 79%; although average room rate was up 0.4% to $204.
However, Dubai beach hotels witnessed 1.8% increase in rooms’ yield to $312 on the back of 2% jump in occupancy to 79%; whereas average room rate was down 0.4% to $395. Overall, Dubai recorded 1.2% fall in hotel rooms’ yield to $216 with average room rate gaining 0.2% to $273; while occupancy fell 1% to 79%.
The Middle East and North Africa region’s hospitality industry witnessed “significant” growth across key performance indicators in November 2014, as the market continued to enter the region’s peak winter and tourism season, according to Yousef Wahbah, Mena Head of Transaction Real Estate at EY.
