Hotels were able to maintain their average daily rate (ADR) in 2020 despite Covid-19 pandemic, in Egypt’s Mediterranean city of Alexandria, according to MENA Hotels Quarterly Review report by Colliers International.
However, the report indicated that Cairo remained the market leader. The report forecasts more growth in hotel supply between 2020 and 2023 especially within the Alexandria and Cairo markets, where supply is expected to experience a growth of 12% and 4% respectively.
The overall Egypt market experienced a decline in performance in 2020 compared to 2019. The Read Sea resort city of Hurghada was able to maintain a fairly stable ADR in 2020 with a decline of just – 2%, the report indicted.
While all four markets in Egypt registered declines in demand in 2020, Cairo and Hurghada both recorded sharp y-o-y occupancy declines of over -60% while Sharm El-Sheikh fared slightly better with a decline of -56%.
The report indicated that an additional 7,000 keys are expected to open in the Egyptian market by the full year 2023. “The forthcoming supply experienced delays due to the impact of Covid-19 on projects under construction, resulting in fewer openings in 2020 with most projects being pushed forward,” it said.
Cairo experienced a growth of 4.5% in supply between 2019 and 2020 with other markets recording no new properties opening with internationally branded operators.
While in Saudi Arabia, the report indicated that at the close of 2020, the Dammam-Khobar market demonstrated a greater resilience to the effects of Covid-19 compared to major Saudi hotel markets.
The supply of internationally branded hotels in the Saudi market grew by 4,500 keys, with 80% of the new supply opening in city of Makkah, which is expected to grow by a further 10% per year until 2023.
In UAE’s case, Dubai hotel occupancy experienced a growth in the later half of the year after reaching as low as 23.6% in April, according to the report.
Increased domestic tourism and government initiatives, such as the recent “Live your Story” and “World’s Coolest Winter” campaign have resulted the increase in occupancy levels,” Colliers report indicated.