Dubai’s average hotel room rate increased by 8.7% year-to-date
The ME Hotel Benchmarking Survey for October 2012 was released today by Ernst & Young.
Commenting on the survey, Yousef Wahbeh, MENA Head of Transaction Real Estate at Ernst & Young said: “The overall occupancy rate in Dubai was at 79.0% year-to-date. In terms of monthly performance, Dubai’s overall occupancy rate increased to 86.6%, which is 5.6% higher than it was in October 2011. In addition, the rooms yield (RevPAR) increased by 12.0% year-to-date, with average room rate increasing by 8.7% year-to-date.
Compared to October 2011, rooms yield (RevPAR) increased by 17.3% and average room rate increased by 9.7% in October 2012. This clearly portrays Dubai’s increasingly stable and growing tourism industry in light of the winter season. These numbers also show that the Emirate is not only a key destination for tourists, but also a major business hub in the region.
In regard to the wider MENA region, we saw notable changes in the city of Amman, where overall occupancy rates increased by 18.0% year-to-date. This significant increase can be attributed to increased political stability, with tourists viewing the city as a safer travel destination. The rooms yield in Amman is 13.1% higher than it was in October 2011, with the average room rate 3.2% higher than it was in October 2011.
We also saw strong changes throughout Egypt. Cities that saw increases in their overall occupancy rates were Cairo, by 7.0% year-to-date, Sharm El Shaikh, by 12.0% year-to-date, and Hurghada, by 8.0% year-to-date. In terms of monthly performance, Cairo’s occupancy rate is 11.1% higher than it was in October 2011, with Sharm El Shaikh increasing by 6.0% and Hurghada by 5.0%.
Additionally, Saudi Arabia saw prominent increases in occupancy rates, with Madina increasing by 3.0% year-to-date, and Makkah increasing by 5.0% year-to-date. Compared to October 2011, the occupancy rate of Makkah increased significantly by 30.0% in October 2012. This is accredited to the Hajj season, with Muslims travelling from all over the world to Makkah.
The cooler months in the UAE and increased political stability in the region are setting up for a prosperous winter season. Thus far, the peak season is off to a strong start, and we predict this to continue throughout the coming months.”
