Qatar’s hospitality industry painted a gloomy picture with declining hotel room yields in the first five months of this year compared to gains in the neighbouring Gulf countries, according to Ernst & Young (E&Y).
Doha’s hotels, which registered 73% occupancy, saw their room yields shrink 0.9% during January-May this year mainly because of lower average room rate, E&Y said.
On the other hand, Manama, Kuwait, Jeddah, Madina and Abu Dhabi witnessed double-digit gains in room yields, according to an E&Y survey released yesterday.
Although hotel occupancy was up 2%, average room rate fell 3.9% to $264, leading to a 0.9% decline in rooms’ yield to $194 year-to-date in May 2013.
In May alone, Doha’s yields plunged 2.3% to $183 due to a 4.2% fall in average room rate to $260, though there was 1% rise in occupancy to 70%.
Manama had the lowest occupancy among the GCC cities, but the room yields surged 13.9% to $172 despite 6.7% shrinkage in average room rate to $347. However, there was a 9% jump in occupancy to 49%.
In Saudi Arabia, Jeddah witnessed 12% expansion in yields to $213 on a 13.5% growth in average room rate to $270. However, occupancy fell 1% to 78%. In Madina, room yields soared 12.5% to $141 on the back of 2% rise in occupancy (75%) and 9.9% in average room rate to $188. Makkah witnessed only a marginal 0.7% gain in the yield to $177 as there was a 5% fall in occupancy (82%) and average room rate rose 6.1% to $213.
Saudi Arabian capital Riyadh saw hotel room yields edge up 0.6% to $149, although occupancy rose 4% (66%). But average room rate shrank 5.2% to $225.
In the UAE, Abu Dhabi outshone other emirates such as Dubai and Al Ain. But Dubai’s prospects were lifted by city hotels and apartments than the beach resorts, whose tariffs are on the higher side.
The yield in Dubai (overall) grew 9.1% to $263 on a 6.3% rise in average room rate to $300 and 2% in occupancy (87%).
Dubai city saw yields gain 8.3% to $203 on the back of a 6.9% jump in average room rate to $229 and a 1% in occupancy (88%). Dubai beach hotels’ yield gained 9.7% to $359 on a 5% rise in average room rate to $416 and a 4% in occupancy (86%).
In Abu Dhabi, a 3% in occupancy (to 82%) and a 7.9% in average room rate to $229 led to an 11.5% increase in room yields to $188.
In Al Ain, yields surged 9% to $102 on the back of 3% rise in occupancy (72%) although average room rate tanked 3.6% to $140.
Kuwait witnessed a 14.2% accretion in rooms’ yield to $186 due to a 3.3% rise in average room rate to $296 and occupancy by 6% (62%).
Muscat saw a 4.7% rise in yields to $162 on the back of 1.1% gains in average room rate to $214 and occupancy by 2% (75%).