JEDDAH — Hotels in Saudi Arabia registered mixed performance last November, the latest HotStats survey of full service hotels in seven MENA cities by TRI Hospitality Consulting said Monday. The report note that the hotels in Riyadh reported growth across all major performance indicators as an increase in occupancy and conferences food and beverage revenues boosted the bottom line yields. Occupancy and average room rate (ARR) for the month of November posted a growth of 11.4 percentage points and 2.2 percent respectively, closing the month at 63.4 percent and $265.22, boosting revenue per available room (RevPAR) by 24.6 percent to $168.20. This translated in gross operating profit per available room (GOPPAR) being 36.8 percent higher at $152.78, compared to the same period last year. However, hotels in Jeddah reported less than encouraging results for the month of November when compared to the same period last year which coincided with the busy Hajj season. Occupancy saw a 1.1 percentage point drop to 77.8 percent, yet ARR increased by 2.9 percent allowing for a 1.4 percent increase in RevPAR to $177.0. A 10.9 percent and 12.0 percent growth in food and beverage revenues respectively grew TRevPAR by 1.5 percent to $279.79. An increase in payroll costs and operating expenses weighed heavily on the bottom line as GOPPAR dropped 7.7 percent to $127.03. In the neighboring Gulf city of Abu Dhabi, hotels continued in their struggle to remain afloat as performance indicators fell further throughout the month of November. Although occupancy in the capital increased 0.2 percentage points reaching 83.5 percent, among the highest in the region, ARR shrunk 7.0 percent to $202.72, reducing RevPAR by 6.8 percent to $169.32. A significant decrease in food and beverage revenues coupled with a decline in conference and banqueting revenues saw TRevPAR drop 5.9 percent to $316.31 with GOPPAR declining 8.2 percent to $162.80. “Hotels in Abu Dhabi continue to report strong occupancy levels, however bottom line performance continues to suffer due to the perpetual pressure on rates as a result of new competition. The capital city boasted the second highest occupancy rates in the region during November. Conversely RevPAR remained subdued as hotels continue to lower their rates despite a steady growth in demand. Abu Dhabi's occupancy was further aided by the hosting of the Abu Dhabi Grand Prix which attracted over 50,000 fans,” said Peter Goddard, managing director of TRI Hospitality Consulting in Dubai. Dubai hotels registered the highest profit margins in 36 months, the report said. Occupancy across surveyed hotels in Dubai increased by 3.1 percentage points to 90.8 percent while ARR increased 1.6 percent to $116.81 compounding a 5.2 percent increase in RevPAR to $327.16. A 23.2 percent increase in meeting revenues coupled with a slight reduction in payroll costs aided a 12.3 percent improvement in GOPPAR to $297.15, the highest in the region for the month and highest for the city in the last 36 months. Meanwhile, in Cairo, hotels showed signs of full recovery in November registering a 74.3 percent increase GOPPAR to $71.75 and saw the strongest profit earnings since the revolution started in early 2011. RevPAR grew 32.3 percent to $64.27 driven by a 14.3 percentage point increase in occupancy to 55.0 percent which masked the 2.0 percent decline in ARR to $116.81. Hotels in Sharm El Sheikh entered the high season showing signs of improvement across performance indicators. Occupancy in the coastal city increased 7.7 percentage points to 79.7 percent, driving a 5.4 percent increase in RevPAR to $41.66 despite a 4.7 percent decrease in ARR to US$52.25. TRevPAR in the city was up 8.7 percent to $75.51 on the back of an increase in food and beverage revenues with GOPPAR growing by 5.2 percent to $32.8. — SG
