Makkah, Madinah occupancy, room rates fall in April: EY

Average room rates and occupancy levels in Makkah and Madinah hotels declined in April 2018 compared to same period last year, on lower occupancy levels, consultancy firm EY said in a recent report.

Revenue per available room (RevPAR) in Makkah hotels fell 27.9 percent year-on-year in April to $69 from $95. While occupancy rates declined 9.2 percent, average daily rate (ADR) declined 17.9 percent.

Occupancy level in Madinah hotels dropped 14.9 percent as ADR fell 2.8 percent. Consequently, RevPAR declined by 19.9 percent from $149 to $119 year-on-year in April 2018. 

Meanwhile, the UAE reaffirmed its competitive lead with Abu Dhabi witnessing the highest occupancy rate of 87.9 percent and Dubai enjoying the highest RevPAR and ADR of $235 and $288, respectively.

High occupancy in both cities were attributed to global and regionally focused high profile conferences and exhibitions.

Abu Dhabi’s occupancy jumped 4.7 percent YoY in April due to the inaugural 2018 Culture Summit. However, occupancy rates dropped in Dubai 3.4 percent and RevPAR decreased 13.3 percent YoY to $235, due to an increase in both hotel supply and traveler preferences for more affordable accommodation.

In Egypt, Cairo’s hospitality sector witnessed the highest increase in occupancy levels from last year with an 8.3 percent YoY jump, from 68.9 percent to 77.3 percent in April 2018.

The increase resulted in RevPAR rising 11.5 percent to $76 from $68, the highest change in the MENA region, the report said.