STR reports mixed Q3 bag for Middle East, good news for Africa

Four Points by Sheraton Doha
Qatar's first Four Points by Sheraton hotel opened recently in Doha, where RevPAR was up 8.2 percent in Q3. Photo credit: Marriott International

Hotels in the Middle East reported mixed Q3 2019 performance results, while hotels in Africa posted increases across the three key performance metrics, according to the latest data from STR.

Across the Middle East, hotel occupancy grew 2.4 percent to 62.2 percent while average daily rate dropped 6.7 percent to $131.49 and revenue per available room fell 4.5 percent to $81.80. 

It was better news for Africa, where occupancy was up 1 percent to 64 percent, ADR grew 3.5 percent to $105.43 and RevPAR improved 4.5 percent to $67.53.

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In Manama, Bahrain, hotel occupancy grew 3.8 percent to 55.5 percent, ADR was up 0.2 percent to BHD58.59 and RevPAR improved 4.1 percent to BHD32.51.

The absolute occupancy level was the highest for a third quarter in Manama since 2010, while the ADR level was the second-lowest for a Q3 since 2008. STR analysts noted that August was the strongest month of the quarter when looking at absolute values: occupancy (59.3 percent), ADR (BHD61.33) and RevPAR (BHD36.38).    

Related: MENA emerges from year of profit decline

Hotels in Doha, Qatar, had reasons to be happy in Q3. Occupancy was up 9 percent to 63.1 percent for the quarter and RevPAR was up 8.2 percent to QAR165.03. At the same time, ADR was down 0.7 percent to QAR261.51.

The absolute occupancy level, driven by a 17.2 percent increase in demand, was the highest for a Q3 in Doha since 2014. When looking at individual months, September was Doha’s first month with a year-over-year increase in ADR since January 2015. STR analysts noted that steady double-digit increases in demand have "helped raise pricing confidence."

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