Sharm El-Sheikh and Hurghada hotels are expected to thrive, benefiting from positive security awareness, and the return of chartered flights from the traditional resource markets, with a forecasted growth of 29% and 36% respectively in year-over-year (y-o-y) revenues per available rooms (RevPAR), according to Colliers International MENA Hotel forecast for September to November 2018.
The report said that Cairo’s hotels are forecasted to witness a 7% growth in RevPAR in the same period, while Alexandria’s hotels are expected to witness a moderate increase of around 14% in RevPAR.
The Jeddah hotel market has experienced continuous growth in RevPAR in the first eight months. The increase in performance is driven by growth on an average daily rate (ADR) with a 7% increase. Meanwhile, Al Khobar hotels market witnessed a decrease of 4% in RevPAR in the mentioned period.
On the other hand, the UAE’s Abu Dhabi continues to witness strong momentum in occupancy and ADR. This trend is expected to continue over the next three months by 1% increase in RevPAR from September 2018 to November 2018, driven by the luxury segment.
Moreover, the UAE’s Dubai beach are forecasted to witness a decline in RevPAR of 5% during the same period, resulting in a drop in ADR, which is adversely affecting the RevPAR.
The report pointed out that Bahrain’s Manama y-o-y RevPAR is forecasted to decrease by 7%, meanwhile, Jordan’s Aqaba is projected to witness a growth of 4% in y-o-y RevPAR in the period from September to November 2018.
Colliers International Hospitality division is a global network of specialist consultants in the hotel and resorts sector.