Bahrain performance drops due to Ramadan calendar shift, new supply; Egypt room rates highest for any May on record. South Africa demand lowest since January 2015, Cape Town declines continued.
LONDON – Hotels in the Middle East reported negative May 2018 performance results, while hotels in Africa posted growth across the three key performance metrics, according to data from STR.
U.S. dollar constant currency, May 2018 vs. May 2017
Middle East
- Occupancy: -10.7% to 57.0%
- Average daily rate (ADR): +1.7% to US$151.62
- Revenue per available room (RevPAR): -9.1% to US$86.45
Africa
- Occupancy: -1.7% to 54.5%
- Average daily rate (ADR): +4.6% to US$109.67
- Revenue per available room (RevPAR): +2.8% to US$59.73
Local currency, May 2018 vs. May 2017
Bahrain
- Occupancy: -24.6% to 40.1%
- Average daily rate (ADR): -12.4% to BHD59.76
- Revenue per available room (RevPAR): -33.9% to BHD23.99
Bahrain reported only 14 days with RevPAR growth in May, most of which came at the end of the month. STR analysts note that the country’s year-over-year performance was affected by the Ramadan calendar shift as well as a surplus in new supply (+9.1%). The trend of new rooms entering the market is likely to continue as Bahrain currently has 2,184 rooms in construction, roughly 13% of the country’s existing supply.
Egypt
- Occupancy: +9.9% to 53.1%
- ADR: +5.7% to EGP1,259.36
- RevPAR: +16.2% to EGP668.40
As a sign of increased tourism and continued hotel performance recovery in the country, STR analysts point out that the 16.2% increase in RevPAR was actually the lowest year-over-year change in Egypt since October 2016. The absolute ADR level was the highest for any May on record.
South Africa
Occupancy: -6.3% to 57.1%
ADR: -1.0% to ZAR1,108.09
RevPAR: -7.2% to ZAR632.96
A 4.2% decrease in demand was the worst for any month in South Africa since January 2015. This decrease, paired with a 2.2% increase in supply, pressured performance levels for the month. STR analysts note that Cape Town reported double-digit declines in occupancy (-14.5% to 53.9%) and RevPAR (-20.2% to ZAR700.96), which was another sign that the city’s water crisis has affected hotel performance.
Central/South America hotel performance for May 2018
Hotels in the Central/South America region reported positive May 2018 performance results, according to data from STR.
U.S. dollar constant currency, May 2018 vs. May 2017
Central/South America
- Occupancy: +0.6% to 54.4%
- Average daily rate (ADR): +34.3% to US$125.66
- Revenue per available room (RevPAR): +35.1% to US$68.34
Local currency, May 2018 vs. May 2017
Argentina
- Occupancy: +3.1% to 58.2%
- ADR: +50.4% to ARS2,658.65
- RevPAR: +55.1% to ARS1,548.17
The absolute occupancy level was the highest for any May in Argentina since 2008. STR analysts also note that the absolute ADR and RevPAR levels were the highest for any month since November 2016, as the country continues to be affected by strong inflation.
Ecuador
- Occupancy: +7.2 to 61.2%
- ADR: -1.0% to US$91.64
- RevPAR: +6.2% to US$56.06
A double-digit rise in demand (+11.4%) outweighed healthy supply growth (+3.9%) and boosted occupancy levels in Ecuador. ADR, on the other hand, declined for the third consecutive month. STR analysts note that demand primarily rises during the weekdays in the country, while ADR drops during the weekdays but remains stable on weekends.
Panama
- Occupancy: +2.7% to 49.5%
- ADR: +0.6% to PAB91.57
- RevPAR: +3.3% to PAB45.31
Strong performance in Panama was driven by a 4.9% jump in demand, the highest increase in room nights sold for any month since October 2017. STR analysts note that performance was lifted during the PIANC World Congress, which was held from 7-11 May. RevPAR growth during the event was the highest on 9 May (+10.7%), while occupancy growth was the strongest on 11 May (+12.7%).
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
