Hotel occupancy fell 2% in Doha in 2016: report
January 31 2017 08:30 PM
Hotel room
The overall average room yield for Doha in 2016 was $136, according to the survey.


Doha’s hospitality market experienced a 2% point decrease in occupancy, falling from 65% in 2015 to 63% in 2016, an EY survey shows.
According to the EY Middle East Hotel Benchmark Survey Report, hospitality markets across MENA witnessed a negative performance last year compared to 2015. The majority of markets experienced a drop in RevPAR due to a slower global economy, making 2016 a challenging year for the hospitality industry.
Additionally in Doha, average room rates decreased by 14.3% from $249 in 2015 to $213 last year, the survey showed. The overall average room yield for Doha in 2016 was $136, a 16.7% drop from $163 in 2015.
The Middle East Hotel Benchmark Survey Report, produced by EY, provides a monthly and year-to-date performance overview of leading hotels in the Middle East. The hotel set includes international branded and operated properties across the five-star and four-star segments.
EY MENA head (Transaction Real Estate) Yousef Wahbah said, “The hospitality market was greatly affected by the drop in oil prices over 2015 and 2016 forcing many hotels to lower their room rates whilst also suffering from lower occupancy. However, some cities, such as Cairo and Ras Al Khaimah, managed to increase both occupancy and room rates for overall higher revenues per room.”
During 2016, the Dubai market registered the highest revenue per available room (RevPAR) of $200, followed by Jeddah, which registered a RevPAR of $196. Dubai also had the highest occupancy rate in 2016 at 80% while Ras Al Khaimah achieved the second highest occupancy at 72.1%.
The highest room rates last year were recorded in Saudi Arabia, with an average daily rate of $287 in Makkah and Jeddah averaging at $277. Cairo’s hospitality market experienced a growth across all key performance indicators (KPIs) in 2016, resulting in the highest increase in room yield compared to 2015 and a RevPAR of 62.7%, due to continued political stability in the country.
“The hospitality market across MENA in 2017 is expected to have a slow performance as the economy slowly adjusts to new trade agreements and currency fluctuations. It can be predicted that some markets may benefit from key annual events such as the Haj pilgrimage, shopping festivals, and global forums, but the overall sentiment is that it will be another challenging year for the hotel industry,” Yousef added.

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