STR: Middle East and Africa hotel performance for Q2 2019

Key Q2 Takeaways:

• Casablanca hotel performance down due to supply influx
• Continued supply growth pushes Dubai performance to significant lows

STR’s sample comprises more than 65,000 hotels and 8.8 million hotel rooms around the globe. Contact media@str.com for additional market data.

LONDON—Hotels in the Middle East reported mixed second-quarter 2019 performance results, while hotels in Africa posted increases across the three key performance metrics, according to data from STR.

U.S. dollar constant currency, Q2 2019 vs. Q2 2018

Middle East

• Occupancy: +2.6% to 61.7%
• Average daily rate (ADR): -7.2% to US$147.44
• Revenue per available room (RevPAR): -4.8% to US$91.03

Africa

• Occupancy: +2.2% to 57.6%
• Average daily rate (ADR): +4.0% to US$106.53
• Revenue per available room (RevPAR): +6.3% to US$61.33

Local currency, Q2 2019 vs. Q2 2018

Casablanca, Morocco

• Occupancy: -7.6% to 58.8%
• ADR: -6.4% to MAD989.65
• RevPAR: -13.5% to MAD582.15

The absolute ADR and RevPAR levels were the lowest for a Q2 in STR’s Casablanca database. STR analysts note this is the first Q2 in Casablanca that showed a double-digit increase in supply (+15.0%)—performance levels were negatively affected as a result. When looking at individual months, May showed the market’s weakest performance across the three key performance metrics: occupancy (-27.8%), ADR (-12.3%) and RevPAR (-36.7%).

Dubai

• Occupancy: -0.9% to 67.1%
• ADR: -12.3% to AED513.73
• RevPAR: -13.1% to AED344.65

Supply has now outgrown demand in Dubai for six consecutive quarters. STR analysts note that the occupancy level was the lowest for a Q2 in Dubai since the time of the economic crisis in 2009, while the absolute ADR and RevPAR levels were the lowest since 2003. June was the strongest month of the quarter with a 30.5% increase in demand, which helped monthly performance levels.

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STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. For more information, please visit str.com.