Hotel revenues per available room forecasted to grow by 8% between December, February in Cairo: Colliers 

Mohamed Samir
2 Min Read

Cairo hotels continued to show a strong performance despite the recent devaluation of the local currency. The continued surge in revenues per available rooms (RevPAR) is a result of the increasing Average Daily Rates (ADR), according to Colliers International’s MENA Hotel Forecasts December 2016 report.

Consequently, hotel profitability rates are expected to further enhance.

According to the report, both Cairo and Jordan’s Aqaba are considered tourism hotspots with 8% and 11% expected RevPAR growth from December to February, respectively. Alexandria is the runner-up with a forecasted 6% RevPAR growth in the same period.

On the other hand, Hurghada and Sharm El-Sheikh continue to feel the negative consequences of declining tourism due to recent events that have weighed down the inflow of tourists. Hurghada and Sharm El-Sheikh are expected to witness 3% and 2% growth, respectively, during the same period.

Moreover, Mecca and Abu Dhabi beach are expected to maintain a stable RevPAR performance, while Jeddah witnessed a 13% drop in RevPAR due to new visa regulations, and the drop in meetings, incentives, conferencing, exhibitions (MICE), and corporate demand caused by the cuts in public and private spendings. Kuwait City also registered a 13% decrease due to the decline in MICE and corporate demand.

Regarding the Guest Experience Index (GEI), Colliers noted that Cairo scored 73 out of 100 for November 2016, marking a three-point increase, while Alexandria scored 76, Sharm El-Sheikh scored 81, and Hurghada scored 82.

The reports indicated that the highest GEI growth was witnessed in Ras Al-Khaimah with a five-point increase, reaching a score of 77 points. Aqaba’s GEI witnessed the highest recorded drop in the GEI score with an eight-point decrease, reaching 71.

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Mohamed Samir Khedr is an economic and political journalist, analyst, and editor specializing in geopolitical conflicts in the Middle East, Africa, and the Eastern Mediterranean. For the past decade, he has covered Egypt's and the MENA region's financial, business, and geopolitical updates. Currently, he is the Executive Editor of the Daily News Egypt, where he leads a team of journalists in producing high-quality, in-depth reporting and analysis on the region's most pressing issues. His work has been featured in leading international publications. Samir is a highly respected expert on the Middle East and Africa, and his insights are regularly sought by policymakers, academics, and business leaders. He is a passionate advocate for independent journalism and a strong believer in the power of storytelling to inform and inspire. Twitter: LinkedIn:
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