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Hotels in Alexandria, Egypt, tops for MENA ADR growth: Colliers

Colliers International's MENA quarterly review reports the Egyptian city of Alexandria was the top hospitality market in the Middle East and North Africa (MENA) region for Q1, with a 10 percent growth in occupancy and 27 percent growth in average daily rate (ADR).

"The 2019 Africa Cup of Nations returns to Egypt, and is expected to attract an estimated 50,000 tourists in returning international market," the report noted. "2019 is expected to be another year of positive hotel performance." The report also suggested positive performance in the Egyptian market has resulted in renewed investor confidence, evidenced by the announcement of new hotel projects, such as Steigenberger and Rixos.

Egypt's coastal cities kicked off the year with solid performance numbers, including double-digit improvements in occupancy and ADR over Q1 2018. In particular, cities on the northern coast are likely to see 5 percent occupancy growth and 17 percent ADR growth by year's end.

In the United Arab Emirates, hotels in Abu Dhabi reported an 11 percent ADR increase for the quarter, up over the same period from the past two years. All other UAE markets reported occupancy declines, even as the region is slated to get an additional 6,500 guestrooms by year's end. Two new luxury hotels opened in Dubai during the quarter (the W Dubai and the Mandarin Oriental Jumeirah Beach), taking the total of newly opened keys to 1,626. Sharjah (219 rooms) and Abu Dhabi (113 rooms) opened one property each during the same period.