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.