STR: Mixed bag for Middle East in Q1, but Africa ascends

Hotels in the Middle East reported mixed Q1 performance results, while hotels in Africa posted growth across the three key performance metrics, according to the latest data from STR.

Across the Middle East, occupancy was up 0.9 percent to 71.0 percent compared to the same quarter in 2018. Average daily rate (ADR), however, dropped 8.8 to $148.43, while revenue per available room (RevPAR) fell 7.9 percent to $105.33. 

Africa fared better year over year, with occupancy growing 1.2 percent to 59.4 percent, ADR up 2.2 percent to $116.64 and RevPAR up 3.5 percent to $69.31. 

In Manama, Bahrain, occupancy was up 12.5 percent to 58.4 percent, ADR improved 1.6 percent to BHD59.78 and RevPAR grew 14.3 percent to BHD34.93.

Manama saw its first Q1 increase in RevPAR since 2014 as strong demand (+15.1 percent) outgrew supply (+2.3 percent) and boosted performance levels. March was the best month of the quarter with a 17.4 percent rise in occupancy and a 5.5 percent lift in ADR, which resulted in a 23.8 percent jump in RevPAR. STR analysts partially attribute the March performance to the F1 Grand Prix at the end of the month.
In Cairo and Giza, Egypt, occupancy was up 6.8 percent to 78.2 percent. ADR improved 6.1 percent to EGP1,762.14 and RevPAR grew 13.3 percent to EGP1,378.82.

Group occupancy (+13.6 percent) pushed overall market occupancy for the quarter. STR analysts noted increased stability and government campaigns to boost tourism have aided hotel performance recovery in Egypt, with further efforts being planned to attract visitors from Asia and Latin America.