Cairo, Al Khobar selected as touristic hotspots with 15%, 9% forecasted growth respectively: Colliers

Daily News Egypt
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Cairo hotels were named touristic hotspots by Colliers International, with a forecasted growth of 15% in revenue per available room (RevPAR). According to Colliers’ the MENA Hotel Forecast May 2018 report. The witnessed increase was driven by occupancy boosted by the growth in the corporate, MICE (meetings, incentives, conventions, and events), and leisure segments.

In Al Khobar’s case, it is forecasted to grow by 9%. Its hotels market in recent months witnessed a positive growth in RevPAR. The growth was due to the increase in both corporate and long-term stays. The report indicates that the recent hikes in oil prices might be the reason behind the growth momentum.

Another remarkable growth in RevPAR took place in Sharm El-Sheikh and Hurghada hotels, with a forecasted growth of 54% and 32%, up from the 45% and 31% in April’s report.

Furthermore, the report said that Saudi Arabia’s Medina and Jeddah maintained their confident and steady performance in the period, both with 0% expected RevPAR growth, backed by the start of the Ramadan season, the return of the Egyptian market to drive occupancy—in Medina’s case—and an increase in government-related business in Jeddah.

On the other hand, Bahrain’s Manama and Saudi Arabia’s Riyadh continue to feel the negative consequences of limited corporate and MICE demand, as well as the return of the summer season and Ramadan in Riyadh’s case. Manama and Ras al-Khaimah are expected to respectively witness 8% and 5% decline in RevPAR during the same period.

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