Occupancy up in Middle East/Africa markets; more developments incoming

The Middle East/Africa region is showing positive performance year-to-date June 2014 as reported by STR Global. The region's occupancy is up 1.0 percent (to 64.6 percent), rising 3.5 percent in average daily rate (ADR) to US $169.22, and a 4.5-percent increase in revenue per available room (RevPAR) to $109.24.

Occupancy rose 17.4 percent (to 75.2 percent) in Doha, Qatar, and 17.2 percent (to 63.7 percent) in Beirut, Lebanon, the largest increases in the region. Nairobi, Kenya, posted the highest occupancy decrease (11.6 percent to 57.7 percent).

ADR rose 12 percent (to $282.62) in Jeddah, Saudi Arabia, and 11.9 percent (to $212.73) in Manama Bahrain. Meanwhile, Riyadh, Saudi Arabia, felt the largest decrease in ADR, down 11.9 percent to $212.73.


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In the region's development news, Arenco Real Estate, a subsidiary of A. A. Al Moosa Enterprises, awarded China State Construction Engineering two construction contracts for resorts on Palm Jumeirah. According to Hotelier Middle East, the developments represent a combined total of 653 rooms, and are projected to take two and a half years to complete.

Additionally, Arabian Business reported that the Dubai-owned Auris Group of Hotels will open six new properties between 2015 and 2017, five of which will be located in Dubai, and one in Africa. The African property will be the 115-room Auris Burj Al Noor Khartoum Sudan, and it will be the company's first hotel outside of the Middle East.

The group currently has six hotels in Dubai and Saudi Arabia, and is planning to operate in 15 countries by 2020, including properties in Jordan, Qatar, Sudan, Tunisia and France.

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Absolute values for ADR and RevPAR were the highest that STR has ever benchmarked, but RevPAR’s growth rate was the lowest it’s been since 2010.