Egyptian hotel market saw an average revenue per available room (RevPAR) growth of 30% in January, compared to the same period last year, according to Colliers International in its latest MENA Hotels Forecast in February.
Colliers explained that the RevPAR growth was driven by both average daily room rate (ADR) and occupancy rate due to strong corporate, leisure, and MICE activities.
According to the full year forecast 2019, Cairo, Sharm El Sheikh, Hurghada, and Alexandria to witness an occupancy of 77%, 58%, 68%, 80% respectively.
In terms of the RevPAR, Colliers foretasted it to reach $98, $27, $39, $65 respectively in Cairo, Sharm El Sheikh, Hurghada, and Alexandria.
“The forecasts for the Egyptian markets continues to be strong, the Red Sea resorts are expected to continue benefitting from positive security perceptions and returning of tourists from major source markets,” according to Colliers.
Meanwhile, Colliers stated that the major Egyptian markets are forecasted to see an average RevPAR growth of 13% in 2019 in comparison to last year.
On the other hand, the Saudi markets experienced a drop in RevPAR levels in the first month of 2019 compared to the same period last year.
“New supply announced to enter the Saudi market over the short to medium terms is expected
to put pressure on the occupancy and average daily rates,” Colliers added.
Furthermore, according to Colliers, Abu Dhabi beach and city hotels experienced a RevPAR growth of 6% and 1% respectively in the first month of 2019, compared to the same period last year. The beach hotels in Abu Dhabi are forecasted to seen average RevPAR growth of 2% in 2019 in comparison to last year.
Moreover, Aqaba and Beirut hotel markets also saw a growth in RevPAR levels in January 2019 and these markets are forecasted to see a RevPAR growth of 5% and 3% respectively in 2019 (full year).
Notably, Colliers International Hotels division is a global network of specialist consultants in hotel, resort, marina, golf, leisure, and spa sectors, dedicated to providing strategic advisory services to owners, developers, and government institutions to extract best values from projects and assets.