Each week, Hotel News Now features a news roundup from a different global region. Today’s compilation focuses on Middle East/Africa.
Middle East performance falls, Africa jumps in Q1
Middle Eastern hoteliers saw across the board drops in the key performance metrics for the first quarter of 2017, while their African counterparts saw strong growth in each metric for the same period, according to the latest data from Hotel News Now’s parent company STR.
In the Middle East, occupancy fell 1.4% to 70.5%, average daily rate dropped 6.8% to $173.06 and revenue per available room decreased 8.2% to $122.07. African hotels saw an increase in occupancy of 5% to 56%, an ADR increase of 9.8% to $111.15, combining for a RevPAR jump of 15.3% to $62.19.
Chinese travelers fueling Middle East bookings
Strong interest from Chinese travelers has helped fuel a significant increase in roomnights booked for 2017, according to data from Tourico Holidays. A news release claims that “inbound hotel room nights in the Middle East have increased by 112% year over year.”
Travelers from China saw a 60% increase, compared to a 12% increase from the U.S. and a 21% jump from Germany.
Dubai hotels show signs of recovery
There are signs of life for hotels in Dubai, United Arab Emirates, according to the latest STR data. The market saw a 2.7% year-over-year increase in occupancy to 86.3% for the first quarter of 2017, even though ADR still fell 6.4% pushing down RevPAR 3.9%.
“A factor that likely played a big role in Dubai’s occupancy growth was the UAE government’s recent decisions to grant visas on arrival for Chinese and Russian nationals,” said Philip Wooller, STR’s area director for the Middle East and Africa.
Dubai-based Smartotels plans high-end brand
Officials with Dubai-based Smartotels Hospitality International plan to bring their approach of low base rates with a long list of on-demand services and extras to a “higher-end” brand with the creation of Form Hotel, writes Hotel News Now’s Terence Baker.
Company officials expect to launch the concept in the Middle East, where founder and managing partner Tarek Daouk believes growth opportunities lie.
“It’s all about timing,” said Daouk, who previously worked for Goldman Sachs. “This is especially important in the Middle East right now. Get that wrong, and investors will go into other asset classes. They have their sights fixed on yields and opportunities.”
Deals and development
- Carlson Rezidor hotel Group announced the opening of the Park Inn by Radisson Nairobi Westlands in Kenya, Africa.
- SBE announced plans to open of the 270-room Mondrian Doha, in Doha, Qatar, during the second quarter of 2017.
- Rotana announced plans for the Erbil Arjaan by Rotana in Iraq, the company’s third property in the country.
- Mövenpick Hotels & Resorts has signed the 252-room Mövenpick Hotel Addis Ababa. The property, owned by Yobek Electrical Enterprise, will be Mövenpick’s first in Ethiopia.
- Hilton has opened the 764-room Hilton Makkah Convention Hotel in Mecca, Saudi Arabia.
- Hilton signed the 254-room DoubleTree by Hilton Sharjah Waterfront Hotel and Suites in Sharjah, United Arab Emirates. The property will open in 2020.
- AccorHotels has signed the 255-room Retreat Palm Dubai, MGallery, which will be the first MGallery property in the United Arab Emirates.
- AccorHotels announced a signed deal for the 250-room Fairmont Pyramids Hotel & Residences to open in Cairo, Egypt in 2022.
- Sarovar Hotels & Resorts will open the 80-room Tetezi Homotel Nairobi in Nairobi, Kenya in 2019.
- Rotana has signed the 222-guestroom Sabah Rotana, set to open in 2020 in Dubai.
Compiled by Sean McCracken.