Saudi hotel occupancy rates drop by 10% in Q1 2017

Hotel occupancy rates in Saudi Arabia have shown double-digit decreases in the first quarter of the year, new figures revealed

Hotel occupancy rates in Saudi Arabia have shown double-digit decreases in Q1 2017.
Hotel occupancy rates in Saudi Arabia have shown double-digit decreases in Q1 2017.

Hotel occupancy rates in Saudi Arabia have shown double-digit decreases in the first quarter of the year, new figures revealed.

Occupancy rates across Saudi Arabia averaged 58.3% in Q1, down 10.4% on the year-earlier period, new data from hospitality analysts STR shows, according to Arabian Business.

The figures also showed that average daily rates (ADR) in the kingdom slumped by 12% to SR578.09 while revenue per available room (RevPAR) plummeted by 21.2% to SR337.29.

Though supply has grown 4.6%, demand fell by 6.4% with performance down across all submarkets across Saudi, the figures revealed.

Despite falling numbers, development in the hospitality sector continues with a reported 68 new hotels and 29,033 hotel rooms expected to open in the kingdom this year.

International hotel brands including Novotel, Park Inn and Intercontinental are investing in Saudi Arabia’s hospitality market, with hotel operator BlueBay Hotels launching two hotels in the first quarter of 2017.

Occupancy rates in the Middle East generally fell by 1.4% to 71% in Q1 compared to Q1 2016 while ADR dropped by 6.8% and RevPAR decreased by 8.2%.

 

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