Saudi: Jeddah hotel profits continue to grow
Hotels in Jeddah reported a 4.5% increase in revenue per available room (RevPAR) for the month of August
Hotel profits in Jeddah have continued to flourish, with hotels reporting a 4.5% increase in revenue per available room (RevPAR) for the month of August, compared to the same period last year.
The surge in room revenues was driven by a 6.3% rise in occupancy levels, offsetting a 3.3% drop in average room rates (ARR) to $286.66 for the period.
However, four and five state hotels in Dubai reported weakening performance levels in August, with RevPAR declining 10.1% to $147.45 for the month.
While, hotels in Doho also witnessed weakening performance metrics - with RevPAR declined by 11.1% to $111.14 in August, as soft demand forced hoteliers to drop rates in a bid to maintain market share.
A surge in food and beverage revenues helped offset the lower room revenues but failed to escalate profits with gross operating profit per available room (GOPPAR) declining 17.7% to $80.64.