Middle East hotel benchmark survey report - January 2016

BenchmarkMiddle East hotel benchmark survey report

January 2016

The hotel benchmark report provides a monthly performance overview of leading hotels in the Middle East. The hotel set includes international branded and operated properties across the five-star and four-star segments.

2 | Benchmark January 2016

EY Middle East hotel benchmark survey

We hope you enjoy the January 2016 report of the EY Middle East hotel benchmark survey. Inside we cover occupancy and rate performance in key hotel markets across selected countries and cities in the Middle East on a monthly and year-to-date basis in local currencies and US dollars.

This monthly Middle East hotel benchmark survey is part of our services to the hospitality sector.

The EY Transaction Real Estate Advisory Services team, headquartered in Dubai, is the leading business advisory practice in the region. Our team consists of professionals from around the globe with extensive real estate, hospitality operations and advisory experience. We understand and offer a full scope of multidisciplinary services for developers, lenders, owners and operators. Our specialist services include acquisitions, capital sourcing, highest- and best-use analysis, due diligence, market and financial feasibility

studies, management company selection/contract reviews, strategic business planning, repositioning analysis, operational enhancement/diagnostics, valuations/appraisals and disposition, for every real estate industry segment,such as hotel, residential, commercial, retail, restaurant, golf, marina, theme park and convention center.

EY is the largest professional services organization in the Middle East with 20 offices in 15 countries and is part of the global EY organization with more than 190,000 people in 150 countries.

Page 3:January 2016 key performance highlights

Page 4:We have highlighted the largest variance on a per-month basis for the various markets over the last 12-month period in regards to occupancy, average room rate, and rooms yield

Page 5:Dubai overall occupancy, average room rate and rooms yield over the past 12 months

Page 6:Monthly performance of various markets compared to the previous year’s monthly period in local currency

Page 7:Monthly performance of various markets compared to the previous year’s monthly period in US dollars

Page 8:Year-to-date performance of various markets compared to the previous year. In local currency

Page 9:Year-to-date performance of various markets compared to the previous year. In US dollars

Yousef Wahbah Partner and Head of MENA Transaction Real Estate, Ernst & Young Middle East, UAE

3Benchmark |

Hospitality markets in Cairo and Madina witnessed a positive increase when compared to the same period last year• In January 2016, Cairo’s hospitality market witnessed

an increase in average occupancy of 7.0% when compared to the same time last year. Average daily room rates increased from US$106 in January 2015 to US$119 in January 2016, resulting in an increase in RevPAR by 27.4%. However, it should be noted that the increase in Cairo’s hospitality market was minimal compared to previous months.

• Madina’s hospitality market witnessed an increase in RevPAR of 17.5% from US$131 in January 2015 to US$153 in January 2016. This was mainly due to the increase in ADR by 15.2% in January 2016 when compared to the same period last year. This may be attributed to the operation of the new Madina International Airport which makes it easier for Muslims to fly directly by national airlines or chartered flights, spending more time in Madina before going to Makkah to perform Umrah for just a day or two.

Hospitality markets witnessed a drop when compared to January 2015• Hospitality markets across MENA witnessed a drop in the three

key performance metrics when compared to the same period last year, this is ascribed to the drop in oil price which has impacted the entire region.

• Doha witnessed the largest drop in RevPAR from US$205 in January 2015 to US$155 in January 2016.

Abu Dhabi and Dubai’s hospitality market witnessed a decrease in RevPAR in January 2016• In January 2016, Abu Dhabi’s hospitality market witnessed

a drop in RevPAR by 15.0% when compared to the same period last year.

• Dubai witnessed a drop in RevPAR by 9.3% in January 2016 when compared to the same time last year.

• Hotels in Abu Dhabi and Dubai noticed a drop in KPI’s due to several factors such as additional room supply, general macro-economic conditions coupled with the drop in the Euro making it more expensive for travelers from Europe and reduced visitation from Russia due to the significant devaluation of their local currency to the lowest level ever.

January 2016 Key Performance Highlights


Markets with the largest variance on a per-month basis

% Occupancy for Doha Hotels

Average room rate for Amman (US$)

RevPAR in Madina (US$)

75 77 77 76 78

59

4954

67

76 77

6167

0

10

20

30

40

50

60

70

80

90

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

Occ

upan

cy %

Months

Occupancy % January 2015–January 2016

Ave

rage

room

rat

e

Months

158

157

154

152

158

155

154

155

152

155

156

158

154

149

150

151

152

153

154

155

156

157

158

159


Average room rate January 2015–January 2016

Roo

m y

ield

Months

131

161179

165

126

172

223

145

266

134

102

140153

0

50

100

150

200

250

300


Room yield January 2015–January 2016

5Benchmark |

Dubai overall monthly performance

% Occupancy for Dubai — Overall hotels

Average room rate for Dubai — Overall hotels (US$)

RevPAR in Dubai — Overall hotels (US$)

Months

Ave

rage

room

rat

e

Average room rate January 2015–January 2016

314 304300 300

327296 303

289

227

174 172 167

194

0

50

100

150

200

250

300

350

NovOct DecJan JanFeb Mar Apr May Jun Jul Aug Sep

Roo

m y

ield

Room yieldJanuary 2015–January 2016

Months

261 261 260242

286259 265

243

194

119105

127154

0

50

100

150

200

250

300

NovOct DecJan JanFeb Mar Apr May Jun Jul Aug Sep

Occ

upan

cy %

Months

88 88 8884 85

68

61

7680

83 8681

87

0

10

20

30

40

50

60

70

80

90

100


Occupancy % January 2015–January 2016


Occupancy Average room rate Rooms yield

Currency 2016 % 2015 % Change in % Points 2016 2015 Change 2016 2015 Change

Bahrain

Manama BHD 54.0 45.0 9.0 73 81 –9.3% 40 36 8.6%

Egypt

Cairo — City EGP 56.0 49.0 7.0 684 614 11.5% 386 303 27.4%

Jordan

Amman JOD 37.0 46.0 –9.0 109 111 –2.2% 41 51 –19.8%

Kuwait

Kuwait KWD 39.0 49.0 –10.0 81 72 13.3% 32 35 –9.0%

Lebanon

Beirut LBP 53.0 50.0 3.0 222,164 274,011 –18.9% 119,459 139,517 –14.4%

Qatar

Doha QAR 67.0 75.0 –8.0 832 991 –16.1% 565 747 –24.4%

Saudi Arabia

Jeddah SAR 65.0 68.0 –3.0 914 931 –1.9% 596 634 –5.9%

Madina SAR 70.0 69.0 1.0 811 704 15.2% 575 490 17.5%

Makkah SAR

Riyadh SAR 61.0 62.0 –1.0 760 802 –5.2% 469 503 –6.8%

United Arab Emirates

Abu Dhabi AED 79.0 81.0 –2.0 533 609 –12.5% 424 499 –15.0%

Dubai — Beach AED 83.0 83.0 0.0 1,587 1,744 –9.0% 1,324 1,464 –9.6%

Dubai — City AED 88.0 90.0 –2.0 809 878 –7.9% 719 791 –9.1%

Dubai — Overall AED 86.6 87.7 –1.1 1,102 1,200 –8.2% 954 1,052 –9.3%

RAK Beach AED 64.5 49.5 15.0 771 704 9.5% 497 349 42.6%

RAK City AED 63.0 70.4 –7.4 286 267 7.2% 180 188 –4.0%

RAK — Overall AED 64.2 53.9 10.3 668 586 14.1% 429 315 35.9%


Monthly performance: January 2016 Currency: local

NotesFigures may not add up due to rounding.

“Dubai — Overall” includes Dubai Beach, Dubai City and Dubai Apartment Hotels.

The Middle East hotel benchmark survey was developed and is maintained by EY’s Dubai office under the direction of Yousef Wahbah who leads the Transaction Real Estate Advisory Services group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, we have not performed an audit or review of the information gathered and do not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of EY and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of EY. All requests to reproduce this information must be addressed to [email protected]. For information regarding the hotel benchmark, contact the Dubai office at +971 4 332 4000.

Selected markets monthly performance (local currency)

7Benchmark |



Bahrain

Manama US$ 54.0 45.0 9.0 194 214 –9.3% 105 97 8.6%

Egypt

Cairo — City US$ 56.0 49.0 7.0 119 106 11.5% 67 53 27.4%

Jordan

Amman US$ 37.0 46.0 –9.0 154 158 –2.2% 58 73 –19.8%

Kuwait

Kuwait US$ 39.0 49.0 –10.0 278 246 13.3% 110 121 –9.0%

Lebanon

Beirut US$ 53.0 50.0 3.0 147 181 –18.9% 79 92 –14.4%

Qatar

Doha US$ 67.0 75.0 –8.0 229 273 –16.1% 155 205 –24.4%

Saudi Arabia

Jeddah US$ 65.0 68.0 –3.0 244 248 –1.9% 159 169 –5.9%

Madina US$ 70.0 69.0 1.0 216 188 15.2% 153 131 17.5%

Makkah US$

Riyadh US$ 61.0 62.0 –1.0 203 214 –5.2% 125 134 –6.8%


Abu Dhabi US$ 79.0 81.0 –2.0 145 166 –12.5% 116 136 –15.0%

Dubai — Beach US$ 83.0 83.0 0.0 432 475 –9.0% 360 399 –9.6%

Dubai — City US$ 88.0 90.0 –2.0 220 239 –7.9% 196 215 –9.1%

Dubai — Overall US$ 86.6 87.7 –1.1 300 327 –8.2% 260 286 –9.3%

RAK Beach US$ 64.5 49.5 15.0 211 193 9.5% 136 96 42.6%

RAK City US$ 63.0 70.4 –7.4 78 73 7.2% 49 52 –4.0%

RAK Overall US$ 64.2 53.9 10.3 183 160 14.1% 117 86 35.9%


Monthly performance: January 2016 Currency: US$


“Dubai — Overall” Includes Dubai Beach, Dubai City and Dubai Apartment Hotels.

The Middle East hotel benchmark survey was developed and is maintained by EY’s Dubai office under the direction of Yousef Wahbah who leads the Transaction Real Estate Advisory Services group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, EY has not performed an audit or review of the information gathered and do not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of EY and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of EY. All requests to reproduce this information must be addressed to [email protected]. For information regarding the hotel benchmark, contact the Dubai office at +971 4 332 4000.

Selected markets monthly performance (US dollars)




Bahrain

Manama BHD 54.0 45.0 9.0 73 81 –9.3% 40 36 8.6%

Egypt

Cairo — City EGP 56.0 49.0 7.0 684 614 11.5% 386 303 27.4%

Jordan

Amman JOD 37.0 46.0 –9.0 109 111 –2.2% 41 51 –19.8%

Kuwait

Kuwait KWD 39.0 49.0 –10.0 81 72 13.3% 32 35 –9.0%

Lebanon

Beirut LBP 53.0 50.0 3.0 222,164 274,011 –18.9% 119,459 139,517 –14.4%

Qatar

Doha QAR 67.0 75.0 –8.0 832 991 –16.1% 565 747 –24.4%

Saudi Arabia

Jeddah SAR 65.0 68.0 –3.0 914 931 –1.9% 596 634 –5.9%

Madina SAR 70.0 69.0 1.0 811 704 15.2% 575 490 17.5%

Makkah SAR

Riyadh SAR 61.0 62.0 –1.0 760 802 –5.2% 469 503 –6.8%


Abu Dhabi AED 79.0 81.0 –2.0 533 609 –12.5% 424 499 –15.0%

Dubai — Beach AED 83.0 83.0 0.0 1,587 1,744 –9.0% 1,324 1,464 –9.6%

Dubai — City AED 88.0 90.0 –2.0 809 878 –7.9% 719 791 –9.1%

Dubai — Overall AED 86.0 87.0 –1.0 1,102 1,200 –8.2% 954 1,052 –9.3%

RAK Beach AED 64.5 64.6 –0.1 704 771 –8.7% 497 349 42.6%

RAK City AED 63.0 63.7 –0.7 286 267 7.2% 180 188 –4.0%

RAK Overall AED 64.2 64.4 –0.3 668 586 14.1% 429 315 35.9%


Year-to-Date Performance (January 2016–January 2016) Currency: local



The Middle East hotel benchmark survey was developed and is maintained by EY’s Dubai office under the direction of Yousef Wahbah who leads the Transaction Real Estate Advisory Services group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, we have not performed an audit or review of the information gathered and do not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of EY and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of EY. All requests to reproduce this information must be addressed to [email protected]. For information regarding the hotel benchmark, contact the Dubai office at +971 4 332 4000.

Selected markets year-to-date performance (local currency)

9Benchmark |


Year-to-Date Performance (January 2016–January 2016) Currency: US$



The Middle East hotel benchmark survey was developed and is maintained by EY’s Dubai office under the direction of Yousef Wahbah who leads the Transaction Real Estate Advisory Services group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney, or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, EY has not performed an audit or review of the information gathered and do not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of EY and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of EY. All requests to reproduce this information must be addressed to [email protected]. For information regarding the hotel benchmark, contact the Dubai office at +971 4 332 4000.



Bahrain

Manama US$ 54.0 45.0 9.0 194 214 –9.3% 105 97 8.6%

Egypt

Cairo — City US$ 56.0 49.0 7.0 119 106 11.5% 67 53 27.4%

Jordan

Amman US$ 37.0 46.0 –9.0 154 158 –2.2% 58 73 –19.8%

Kuwait

Kuwait US$ 39.0 49.0 –10.0 278 246 13.3% 110 121 –9.0%

Lebanon

Beirut US$ 53.0 50.0 3.0 147 181 –18.9% 79 92 –14.4%

Qatar

Doha US$ 67.0 75.0 –8.0 229 273 –16.1% 155 205 –24.4%

Saudi Arabia

Jeddah US$ 65.0 68.0 –3.0 244 248 –1.9% 159 169 –5.9%

Madina US$ 70.0 69.0 1.0 216 188 15.2% 153 131 17.5%

Makkah US$

Riyadh US$ 61.0 62.0 –1.0 203 214 –5.2% 125 134 –6.8%


Abu Dhabi US$ 79.0 81.0 –2.0 145 166 –12.5% 116 136 –15.0%

Dubai — Beach US$ 83.0 83.0 0.0 432 475 –9.0% 360 399 –9.6%

Dubai — City US$ 88.0 90.0 –2.0 220 239 –7.9% 196 215 –9.1%

Dubai — Overall US$ 86.0 87.0 –1.0 300 327 –8.2% 260 286 –9.3%

RAK Beach US$ 64.5 64.6 –0.1 193 211 –8.7% 136 96 42.6%

RAK City US$ 63.0 63.7 –0.7 78 73 7.2% 49 52 –4.0%

RAK Overall US$ 64.2 64.4 –0.3 183 160 14.1% 117 86 35.9%

Selected markets year-to-date performance (US dollars)

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Middle East hotel benchmark survey report - January 2016