GCC hospitality market sees mixed results: EY

Business Reporter –
Muscat, APRIL 12 –
The hospitality market across the GCC witnessed an even split in increases and declines of KPIs in February 2017 when compared to the same month last year, said EY in its MENA Hotel Benchmark Survey Report.
In the GCC, half of the markets saw an increase in revenue per average room (RevPAR), these were the UAE, Kuwait, and Qatar; while the other half, KSA, Oman, and Bahrain, saw a slowdown in performance, said Yousef Wahbah, MENA Head of Transaction Real Estate at EY.
Among the GCC cities surveyed, the city-based hotels of Dubai saw the highest occupancy at 89.1 per cent, while the beach-based hotels had the highest average room rate at $399. Also in the UAE, Abu Dhabi experienced the highest increase in RevPAR compared to February 2016.
Abu Dhabi’s hospitality market witnessed an increase across all KPI’s in February 2017. Last month, RevPAR increased by 21.7 per cent when compared to the same time last year, mainly due to the increase in ADR from $139 in February 2016 to $163 in February 2017 along with an increase in average occupancy of 3.1 per cent in February 2017 when compared to the same period last year.
In February 2017, Dubai’s hospitality market witnessed an increase in average occupancy by 4.0 per cent when compared to the same time last year. The increase in occupancy may be a result of several events and exhibitions that took place in February such as the annual Dubai Jazz Festival, Gulf Food Exhibition, and the Bridal Show Event.
Muscat’s hospitality market witnessed a decrease in RevPAR from $167 in February 2016 to $147 in February 2017, this was mainly due to the drop in ADR by 19.7 per cent when compared to the same time last year.
However, it should be noted that occupancy increased by 7.8 per cent from 79.2 per cent in February 2016 to 87.0 per cent in February 2017.