Commenting on the survey, Yousef Wahbah, MENA Head of Transaction Real Estate at EY said:
“Middle East hotel performance was mixed in the month of May. GCC hotels emerged as the highest performers in terms of occupancy in May 2016, with hotels in the UAE and Jeddah recording the highest May occupancy rates in the Middle East this year. Dubai hotels recorded an average occupancy of 86.0%, followed by 81.0% in Abu Dhabi and 74.2% in Ras Al Khaimah (RAK). While occupancy rates remained high in both Dubai and Abu Dhabi, their hospitality markets witnessed a decrease in revenue per average room (RevPAR) of 7.0% and 8.9% respectively in May 2016. This was mainly due to the drop in average daily rates in both cities. Conversely, RAK and Jeddah recorded positive increases in RevPAR, when compared to the same period last year.
Cairo hotels continued their upward trajectory, recording 74% occupancy in May 2016, the highest occupancy since December 2010, RevPAR in the city also increased by 46.5% when compared to May 2015.
Looking at the Levant region, Amman’s hospitality market witnessed a jump in ADR from US$158 in May 2015 to US$179 in May 2016, resulting in a rise in RevPAR by 14.4% in May 2016 when compared to the same period last year.
Overall, the Middle East hospitality markets are weathering the economic conditions quite well. The favorable weather, regional business conferences and leisure destinations across the region continue to attract tourists into the Middle East.”