Makkah hotels post multi-year April lows for occupancy, room rates
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- Makkah hotels post multi-year April lows for occupancy, room rates
Saturday, June 2, 2018
STR says occupancy was the lowest for an April since 2010, while absolute average daily rate was the lowest for the month since 2007
Hotel occupancy and room rates in the Saudi holy city of Makkah fell to multi-year lows in April, according to new data published by analysts STR.
STR said that the absolute occupancy level was the lowest for an April since 2010, while absolute average daily rate (ADR) was the lowest for the month since 2007.
Occupancy rates in Makkah slumped by more than 12 percent to 66.4 percent in April while ADR dropped by 17.9 percent to SR387.12 and revenue per available room (RevPAR) plummeted by nearly 28 percent to SR257.23 compared to April 2017.
STR said significant supply growth (up 6.2 percent) was the main driver of negative performance in the Makkah market last month.
Until a 6.7 percent demand decrease in April, the market had reported four consecutive months of demand growth, it added.
Hotels in the wider Middle East market Middle East saw occupancy fall by 4.4 percent to 72 percent while ADR dropped by 8.1 percent to $160.37 and RevPAR slipped by 12.1 percent to $115.45.
Source: http://www.arabianbusiness.com/travel-hospitality/397354-wkd-makkah-hotels-post-multi-year-april-lows-for-occupancy-room-rates
