Middle East benchmark hotel survey (April 2014) · PDF fileThe hotel benchmark report provides...

The hotel benchmark report provides a monthly performance overview of leading hotels in the Middle East. The hotel set includes international branded and operated properties across the 5 star and 4 star segment.

BenchmarkMiddle East Hotel Benchmark Survey Report April 2014

IntroductionEY Middle East Hotel Benchmark Survey

We hope you enjoy the April 2014 report of the EY Middle East Hotel Benchmark Survey. Inside we cover occupancy and rate performance in key hotel markets across selected countries and cities in the Middle East on a monthly and Year-to-Date basis in local currencies and US dollars.

This monthly Middle East Hotel Benchmark Survey is part of our services to the hospitality sector.

EY Transaction Real Estate Advisory Services team headquartered in Dubai is the leading business advisory practice in the region. Our team consists of professionals from around the globe with extensive real estate, hospitality operations and advisory experience. We understand and offer a full scope of multidisciplinary services for developers, lenders, owners and operators. ”Our specialist services include acquisitions, capital sourcing, highest and best use analysis, due diligence, market and financial feasibility studies, management company selection/contract reviews, strategic business planning, repositioning analysis, operational enhancement/diagnostics, valuations/appraisals and disposition, for every real estate industry segment such as hotel, residential, commercial, retail, restaurant, golf, marina, theme park and convention center.

EY is the largest professional services firm in Middle East with 20 offices in 15 countries and part of the global EY network with more than 175,000 people in over 150 countries.

Sincerely

Yousef Wahbah Partner and Head of MENA Transaction Real Estate

Page 3:April 2014 key performance highlights.

Page 4:We have highlighted the largest variance on a per month basis for the various markets over the last twelve month period in regards to occupancy, average room rate, and Rooms yield.

Page 5:Dubai overall occupancy, average room rate and Rooms yield over the past twelve months.

Page 6:Monthly performance of various markets compared to the previous year’s monthly period in local currency.

Page 7:Monthly performance of various markets compared to the previous year’s monthly period in US dollar currency.

Page 8:Year-to-Date performance of various markets compared to previous year period in local currency.

Page 9:Year-to-Date performance of various markets compared to previous year period in US dollar currency.

April 2014 Key Performance Highlights

Hospitality markets in Jeddah, Riyadh and Makkah have witnessed a positive increase in occupancy • Makkah’s hospitality market has witnessed an increase in occupancy of 8.0% during April 2014 compared to the same period last year,

however have recorded a decrease in ADR of 17.5%, which resulted in a drop in RevPAR of 7.8% during the same period

• In April 2014, Jeddah’s average occupancy levels increased by 2.0% from April 2013, coupled by a jump in ADR of 11.2% during the same period, from US$235 in April 2013 to US$262 in April 2014. As per the Saudi Commission for Tourism & Antiquities (SCTA) Jeddah is experiencing healthier number of tourists due to the continuous growth of religious Hajj and Umrah tourism

• The Riyadh Travel Fair 2014 which began on the 15th of April 2014 had a positive impact on Riyadh’s hospitality market which were reflected by the 10.0% jump in average occupancy compared to April last year. RevPAR increased by 8.1% during the same period, despite a slight decrease in ADR from US$229 in April 2013 to US$218 in April 2014

Beirut and Sharm El Sheikh’s hospitality market witness double figure sliding• Due to Lebanon’s unstable political situation, Beirut has witnessed a decrease in RevPAR of 24.4% in April 2014 compared

to April 2013, the decline in RevPAR was due to the continued drop in average occupancy levels of 12.0%, coupled by a decrease in ADR from US$168 in April 2013 to US$156 in April 2014

• Although Cairo is relatively isolated from Sharm El Sheikh it still had an impact on tourism on the Red Sea resort. There has been a decrease in Sharm El Sheikh average occupancy of 15.0% in April 2014 compared to April 2013 as we all as a drop of 4.5% in the ADR during the same period, resulting in a decline in RevPAR of 23.5%

UAE’s overall hospitality market sees growth in April 2014• Dubai’s overall average occupancy levels have remained stable at approximately 85.0% in both April 2013 and 2014 even given

the notable increase in room supply over the last year. The positive occupancy levels were coupled by an increase in ADR from US$308 in April 2013 to US$327 in April 2014, resulting in an increase in RevPAR of 5.6% during the same period

• April 2014 ADR in Dubai, while higher than March 2014 rates, average occupancy levels dropped from 90% in March 2014 to 84% in April 2014. The slight month over month decrease in occupancy from March to April is in line with the market’s typical seasonality, as tourism inflows begin to slow towards the hot summer months and Ramadan in June/July

% Occupancy for Sharm El Shaikh Hotels

Average Room Rate for Makkah (US$)

Rev PAR in Beirut (US$)

Markets with the largest variance on a per month basis

Occ

upan

cy %

Occupancy % April 2013–April 2014

Months

76

65

72

62 63

45

57 5760

5458

49

61

0

10

20

30

40

50

60

70

80

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Ave

rage

room

rat

e

Average room rateApril 2013–April 2014

Months

169 168205

660613

186

523

243 250

183 166 155 139

0

100

200

300

400

500

600

700


Roo

m y

ield

Room yieldApril 2013–April 2014

Months

108

98 101

67

86

56

8580

94

6065 62

82

0

20

40

60

80

100

120


Dubai overall monthly performance% Occupancy for Dubai — Overall Hotels

Average room rate for Dubai — Overall hotels (US$)

Rev PAR in Dubai — Overall hotels (US$)

Months

Ave

rage

room

rat

e

Average room rate April 2013–April 2014

308

243

192179

213 221

330 333305

337313 319 327

0

50

100

150

200

250

300

350

400


Roo

m Y

ield

Room yieldApril 2013–April 2014

Months

262

202

152

91

149165

274286

251

294278 286

276

0

50

100

150

200

250

300

350


Occ

upan

cy %

Occupancy %April 2013–April 2014

Months

85 8379

51

7075

83 8682

87 89 9084

0

10

20

30

40

50

60

70

80

90

100


Occupancy Average room rate Rooms yield

Currency 2014% 2013% Change in % points 2014 2013 Change 2014 2013 Change

Bahrain

Manama BHD 52.0 49.0 3.0 81 92 -12.9% 42 46 -7.9%

Egypt

Cairo — City EGP 35.0 33.0 2.0 450 448 0.5% 160 151 6.0%

Sharm El Shaikh EGP 61.0 76.0 -15.0 240 251 -4.5% 147 192 -23.5%

Jordan

Amman JOD 71.0 67.0 4.0 111 110 1.7% 80 74 7.9%

Lebanon

Beirut LBP 52.0 64.0 -12.0 236,002 254,398 -7.2% 124,237 164,249 -24.4%

Qatar

Doha QAR 76.0 72.0 4.0 837 837 0.1% 642 609 5.4%

Saudi Arabia

Jeddah SAR 79.0 77.0 2.0 981 882 11.2% 776 687 12.9%

Madina SAR 80.0 66.0 14.0 562 645 -12.8% 451 428 5.6%

Makkah SAR 77.0 69.0 8.0 523 634 -17.5% 405 439 -7.8%

Riyadh SAR 80.0 70.0 10.0 818 859 -4.8% 655 606 8.1%

United Arab Emirates

Abu Dhabi AED 84.0 80.0 4.0 816 815 0.1% 690 659 4.7%

Dubai — Beach AED 81.0 84.0 -3.0 1,998 1,818 9.9% 1,638 1,545 6.0%

Dubai — City AED 85.0 85.0 0.0 788 745 5.7% 677 640 5.9%

Dubai — Overall AED 84.3 85.1 -0.7 1,203 1,130 6.5% 1,014 961 5.6%

EY Middle East Hotel Benchmark Survey

Monthly performance: 04/2014 Currency: Local

Various markets monthly performance (Local currency)

NotesFigures may not add up due to rounding.

‘Cairo — Overall’ includes: Cairo City and Cairo Pyramid Hotels.

‘Dubai — Overall’ Includes: Dubai Beach, Dubai City and Dubai Apartment Hotels

The Middle East Hotel Benchmark Survey was developed and is maintained by EY’s Dubai office under the direction of Yousef Wahbah who leads the Transaction Real Estate Advisory Services Group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney, or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, EY has not performed an audit or review of the information gathered and does not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of EY and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of EY. All requests to reproduce this information must be addressed to [email protected]. For information regarding the Hotel Benchmark, contact the Dubai office of EY at + 971 4 332 4000.



Bahrain

Manama US$ 52.0 49.0 3.0 214 245 -12.9% 112 122 -7.9%

Egypt

Cairo — City US$ 35.0 33.0 2.0 78 78 0.5% 28 26 6.0%

Sharm El Shaikh US$ 61.0 76.0 -15.0 42 44 -4.5% 25 33 -23.5%

Jordan

Amman US$ 71.0 67.0 4.0 158 156 1.7% 114 106 7.9%

Lebanon

Beirut US$ 52.0 64.0 -12.0 156 168 -7.2% 82 108 -24.4%

Qatar

Doha US$ 76.0 72.0 4.0 230 230 0.1% 177 167 5.4%

Saudi Arabia

Jeddah US$ 79.0 77.0 2.0 262 235 11.2% 207 183 12.9%

Madina US$ 80.0 66.0 14.0 150 172 -12.8% 120 114 5.6%

Makkah US$ 77.0 69.0 8.0 139 169 -17.5% 108 117 -7.8%

Riyadh US$ 80.0 70.0 10.0 218 229 -4.8% 175 162 8.1%


Abu Dhabi US$ 84.0 80.0 4.0 222 222 0.1% 188 179 4.7%

Dubai — Beach US$ 81.0 84.0 -3.0 544 495 9.9% 446 421 6.0%

Dubai — City US$ 85.0 85.0 0.0 214 203 5.7% 184 174 5.9%

Dubai — Overall US$ 84.3 85.1 -0.7 327 308 6.5% 276 262 5.6%


Monthly performance: 04/2014 Currency: US$

Various markets monthly performance (US dollar)







Bahrain

Manama BHD 51.0 48.0 3.0 78 81 -4.4% 40 40 1.0%

Egypt

Cairo — City EGP 27.0 28.0 -1.0 460 487 -5.6% 127 136 -6.9%

Sharm El Shaikh EGP 56.0 61.0 -5.0 273 295 -7.6% 153 183 -16.1%

Jordan

Amman JOD 63.0 60.0 3.0 111 111 0.2% 71 67 5.8%

Lebanon

Beirut LBP 42.0 58.0 -16.0 236,793 254,559 -7.0% 101,468 149,049 -31.9%

Qatar

Doha QAR 71.0 67.0 4.0 859 897 -4.2% 614 604 1.7%

Saudi Arabia

Jeddah SAR 77.0 76.0 1.0 998 936 6.7% 778 715 8.8%

Madina SAR 82.0 73.0 9.0 684 746 -8.4% 566 552 2.6%

Makkah SAR 82.0 72.0 10.0 617 740 -16.7% 510 536 -4.7%

Riyadh SAR 73.0 66.0 7.0 826 852 -3.1% 608 564 7.9%


Abu Dhabi AED 82.0 82.0 0.0 799 855 -6.6% 663 709 -6.5%

Dubai — Beach AED 83.0 86.0 -3.0 1,739 1,659 4.8% 1,452 1,439 0.9%

Dubai — City AED 90.0 90.0 0.0 887 831 6.7% 799 748 6.8%

Dubai — Overall AED 87.0 88.0 -1.0 1,191 1,136 4.8% 1,042 1,006 3.6%


Year over Year performance (January–April) Currency: Local

Various markets Year-to-Date performance (Local currency)







Bahrain

Manama US$ 51.0 48.0 3.0 207 216 -4.4% 107 106 1.0%

Egypt

Cairo — City US$ 27.0 28.0 -1.0 80 84 -5.6% 22 24 -6.9%

Sharm El Shaikh US$ 56.0 61.0 -5.0 47 51 -7.6% 27 32 -16.1%

Jordan

Amman US$ 63.0 60.0 3.0 158 158 0.2% 101 95 5.8%

Lebanon

Beirut US$ 42.0 58.0 -16.0 156 168 -7.0% 67 98 -31.9%

Qatar

Doha US$ 71.0 67.0 4.0 236 247 -4.2% 169 166 1.7%

Saudi Arabia

Jeddah US$ 77.0 76.0 1.0 266 250 6.7% 207 191 8.8%

Madina US$ 82.0 73.0 9.0 182 199 -8.4% 151 147 2.6%

Makkah US$ 82.0 72.0 10.0 165 197 -16.7% 136 143 -4.7%

Riyadh US$ 73.0 66.0 7.0 220 227 -3.1% 162 150 7.9%


Abu Dhabi US$ 82.0 82.0 0.0 218 233 -6.6% 181 193 -6.5%

Dubai — Beach US$ 83.0 86.0 -3.0 473 452 4.8% 395 392 0.9%

Dubai — City US$ 90.0 90.0 0.0 241 226 6.7% 218 204 6.8%

Dubai — Overall US$ 87.0 88.0 -1.0 324 309 4.8% 284 274 3.6%


Year over Year performance (January–April) Currency: US$

Various markets Year-to-Date performance (US dollar)





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Middle East benchmark hotel survey (April 2014) · PDF fileThe hotel benchmark report provides...

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