benchmark - ey · pdf filewe hope you enjoy the december 2013 report of the ey middle east...

The hotel benchmark report provides a monthly performance overview of leading hotels in the Middle East. The hotel set includes international branded and operated properties across the 5 star and 4 star segment.

BenchmarkMiddle East Hotel Benchmark Survey Report December 2013

IntroductionEY Middle East Hotel Benchmark Survey

We hope you enjoy the December 2013 report of the EY Middle East Hotel Benchmark Survey. Inside we cover occupancy and rate performance in key hotel markets across selected countries and cities in the Middle East on a monthly and Year-to-Date basis in local currencies and US dollars.

This monthly Middle East Hotel Benchmark Survey is part of our services to the hospitality sector.

EY Transaction Real Estate Advisory Services team headquartered in Dubai is the leading business advisory practice in the region. Our team consists of professionals from around the globe with extensive real estate, hospitality operations and advisory experience. We understand and offer a full scope of multidisciplinary services for developers, lenders, owners and operators. ”Our specialist services include acquisitions, capital sourcing, highest and best use analysis, due diligence, market and financial feasibility studies, management company selection/contract reviews, strategic business planning, repositioning analysis, operational enhancement/diagnostics, valuations/appraisals and disposition, for every real estate industry segment such as hotel, residential, commercial, retail, restaurant, golf, marina, theme park and convention center.

EY is the largest professional services firm in Middle East with 18 offices in 13 countries and part of the global EY network with over 167,000 people in 140 countries.

Sincerely

Yousef Wahbah Partner and Head of MENA Transaction Real Estate

Page 3:December 2013 key performance highlights.

Page 4:We have highlighted the largest variance on a per month basis for the various markets over the last twelve month period in regards to occupancy, average room rate, and Rooms yield.

Page 5:Dubai overall occupancy, average room rate and Rooms yield over the past twelve months.

Page 6:Monthly performance of various markets compared to the previous year’s monthly period in local currency.

Page 7:Monthly performance of various markets compared to the previous year’s monthly period in US dollar currency.

Page 8:Year-to-Date performance of various markets compared to previous year period in local currency.

Page 9:Year-to-Date performance of various markets compared to previous year period in US dollar currency.

Key Performance Highlights in December 2013 and Full Year 2013Cairo’s hospitality market has registered the largest drop in RevPAR in the year 2013, as compared to 2012 of the countries surveyed within MENA• During the year 2013, the Cairo hospitality market witnessed a considerable drop in RevPAR when compared to last year. Due to the

continued political instability and security concerns plaguing the city during the year, RevPAR decrease by 41.2% compared to the previous year. Although there was no change in ADR between 2012 and 2013, average occupancy in the city decreased from 38% in 2012 to 22% in 2013.

• In December 2013 alone, Cairo city’s RevPAR decreased by 26.2%, due to a drop in occupancy of 5% during the same period, coupled by a decrease in ADR from US$89 in December 2012 to US$80 in December 2013

• Both Hurghada and Sharm El Shaikh have witnessed a drop in RevPAR in December 2013 of 22.6% and 23.1% respectively when compared to December 2012. Hurghada’s ADR fell from US$32 in December 2012 to US$25 in December 2013, with a slight drop in average occupancy levels of 2% during the same period. Sharm El Shaikh ADR dropped from US$50 to US$44 during the same period, coupled by a decrease in average occupancy of 9%.

Hospitality KPIs for Syria’s neighbors continued to decline in 2013• The Syrian conflict has had a significantly negative effect on its neighboring countries’ hospitality markets.

• The US and other countries have renewed travel warning to their citizens traveling to Lebanon, voicing concerns over the recent car bombings in the country.

• ►During the full year 2013, average occupancy in Beirut amounted to 51%, a decrease of 3% from 2012, with average room rates decreasing from US$201 to US$169 during the same period, which resulted in a drop in RevPAR of 20.8%.

• In December 2013, there was a minimal drop in Beirut’s hospitality KPI’s, a decrease in RevPAR of only 1.6% compared to the same period last year.

• Jordan’s hospitality market also witnessed a decline in Key Performance Indicators due to the Syrian conflict, with RevPAR during the year 2013 falling by 8.4% compared to 2012, from US$105 to US$96, mainly due to a decrease in average occupancy during 2013 of 8% during the same period.

• However, in December 2013, Jordan witnessed an increase in average occupancy of 6% when compared to December 2012, resulting in an increase in RevPAR of 10.2% during the same period.

General improvement in GCC hospitality market, with the exception of Qatar during 2013• GCC cities, notably Manama, Jeddah and Kuwait City have recorded positive changes in hospitality KPI’s during 2013 compared

to last year.

• Manama, have witnessed an increase in RevPAR of 10.8% during 2013 compared to 2012, due to governments efforts in stabilizing the political situation in Bahrain during the year. Average occupancy in the city increased from 37% in December 2012 to 42% in December 2013.

• Jeddah recorded a 9.3% increase in RevPAR during the year 2013 compared to 2012, mainly due to an increase in corporate demand in the city as well as the lack of new supply of 4 & 5 star hotel rooms during 2013. As per JLL’s Q3 2013 Jeddah report, “There has been no major supply additions to the Jeddah market since Q1 2013 with only 150 rooms entering the market, no further additions are expected in the last quarter of 2013 due to project delays”.

• Kuwait City, have witnessed an increase in RevPAR of 3.7% in 2013 compared to 2012, although the increase does not seem significant, it should be noted that based on our research, approximately 753 new room (mix of 4 & 5 star hotels) have come online in 2013, most notably the Jumeirah Messilah Beach Hotel & Spa which commenced operations in Q2 2013, the hotel offers 408 key.

• In December 2013, Doha’s ADR was recorded at US$245 compared to US$301 in December 2012, while average occupancy levels remained relatively the same at 62%. The drop in ADR has decreased RevPAR from US$190 to US$153 during the same period.

• Doha hospitality market witnessed a decrease in RevPAR of 5.4% in 2013 when compared to 2012, mainly due to a decrease in ADR from US$265 in 2012 to US$252 in 2013.

Dubai’s hospitality market witnessed positive growth on all Key Performance Indicators in the year 2013 compared to the year 2012.• During 2013, approximately 2,780 new branded hotel rooms all within 4 & 5 star hotel segment were added to Dubai’s hotel supply,

which include but are not limited to Ocean View Hotel, the Ritz Carlton extension on Jumeirah Beach, the Oberoi hotel in Business Bay, Sofitel, Anantara on Palm Jumeriah, Conrad Hotel, Movenpick Hotel in JLT and Novotel in Al Barsha.

• Dubai’s hospitality market has rapidly absorbed this influx of new supply and continues to perform exceptionally well, showing a jump in ADR from US$261 in 2012 to US$278 in 2013, resulting in an overall increase in RevPAR of 5.9% in the same period.

• In December 2013, Dubai overall witnessed a slight increase in RevPAR of 3.4% compared to the same period last year, with occupancy levels holding steady at approximately 82%, even given the notable increase in room supply over the year.

• Both Abu Dhabi and Al Ain witnessed an increase in RevPAR in the year 2013 compared to 2012, of 7.4% and 13.5% respectively. Abu Dhabi ADR’s increased from US$195 in 2012 to US$207 in 2013, while Al Ain ADR recorded only a slight increase in ADR of 2.4% compared to the same period. However average occupancy levels in Al Ain increased from 65% in 2012 to 72% in 2013.

% Occupancy for Sharm El Shaikh Hotels

Average Room Rate for Hurghada (US$)

Rev PAR in Doha (US$)

Markets with the largest variance on a per month basis

Occ

upan

cy %

Occupancy % December 2012–December 2013

Months

6964 64

7680

65

72

62 63

45

57 5760

0

10

20

30

40

50

60

70

80

90

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Ave

rage

room

rat

e

Average room rateDecember 2012–December 2013

Months

32

39

33 34

41 41

34 33

46

41 40

26 25

0

5

10

15

20

25

30

35

40

45

50


Roo

m y

ield

Room yieldDecember 2012–December 2013

Months

190

172 175

236

201

183

146

102119

143

170 171153

0

50

100

150

200

250


Dubai overall monthly performance% Occupancy for Dubai — Overall Hotels

Average room rate for Dubai — Overall hotels (US$)

Rev PAR in Dubai — Overall hotels (US$)

Months

Ave

rage

room

rat

e

Average room rate December 2012–December 2013

291313

298

328313

243

192179

213 221

330 333

305

0

50

100

150

200

250

300

350


Roo

m Y

ield

Room yieldDecember 2012–December 2013

Months

243

282267

295269

202

152

91

149165

274286

251

0

50

100

150

200

250

300

350


Occ

upan

cy %

Occupancy %December 2012–December 2013

Months

8390 90 90

86 8379

51

7075

83 8682

0

10

20

30

40

50

60

70

80

90

100


Occupancy Average room rate Rooms yield

Currency 2013% 2012% Change in % points 2013 2012 Change 2013 2012 Change

Bahrain

Manama BHD 37.0 37.0 0.0 78 77 2.3% 30 29 3.6%

Egypt

Cairo — City EGP 25.0 30.0 -5.0 459 512 -10.4% 116 157 -26.2%

Cairo — Overall EGP 26.3 31.7 -5.4 465 508 -8.5% 122 161 -24.0%

Hurghada EGP 60.0 62.0 -2.0 147 185 -20.7% 89 115 -22.6%

Sharm El Shaikh EGP 60.0 69.0 -9.0 251 287 -12.5% 153 199 -23.1%

Jordan

Amman JOD 58.0 52.0 6.0 107 106 0.4% 62 56 10.2%

Kuwait

Kuwait KWD 47.0 53.0 -6.0 95 73 29.1% 45 39 16.5%

Lebanon

Beirut LBP 52.0 52.0 0.0 272,387 275,450 -1.1% 142,739 145,125 -1.6%

Oman

Muscat OMR 77.0 76.0 1.0 84 86 -2.7% 65 66 -1.3%

Qatar

Doha QAR 62.0 63.0 -1.0 891 1,095 -18.7% 557 691 -19.5%

Saudi Arabia

Jeddah SAR 73.0 69.0 4.0 949 932 1.9% 698 649 7.5%

Madina SAR 74.0 65.0 9.0 692 672 2.9% 516 442 16.8%

Makkah SAR 77.0 70.0 7.0 939 934 0.6% 724 660 9.8%

Riyadh SAR 65.0 58.0 7.0 793 849 -6.6% 522 497 5.0%

United Arab Emirates

Abu Dhabi AED 80.0 81.0 -1.0 741 732 1.2% 598 593 0.8%

Al Ain AED 74.0 69.0 5.0 552 532 3.9% 411 370 11.0%

Dubai — Beach AED 76.0 83.0 -7.0 1,572 1,433 9.7% 1,195 1,194 0.1%

Dubai — City AED 86.0 83.0 3.0 861 833 3.3% 746 694 7.5%

Dubai — Overall AED 82.3 83.4 -1.1 1,119 1,068 4.8% 921 891 3.4%

EY Middle East Hotel Benchmark Survey

Monthly performance: 12/2013 Currency: Local

Various markets monthly performance (Local currency)

NotesFigures may not add up due to rounding.

‘Cairo — Overall’ includes: Cairo City and Cairo Pyramid Hotels.

‘Dubai — Overall’ Includes: Dubai Beach, Dubai City and Dubai Apartment Hotels

The Middle East Hotel Benchmark Survey was developed and is maintained by EY’s Dubai office under the direction of Yousef Wahbah who leads the Transaction Real Estate Advisory Services Group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney, or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, EY has not performed an audit or review of the information gathered and does not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of EY and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of EY. All requests to reproduce this information must be addressed to [email protected]. For information regarding the Hotel Benchmark, contact the Dubai office of EY at + 971 4 332 4000.



Bahrain

Manama US$ 37.0 37.0 0.0 208 203 2.3% 78 76 3.6%

Egypt

Cairo — City US$ 25.0 30.0 -5.0 80 89 -10.4% 20 27 -26.2%

Cairo — Overall US$ 26.3 31.7 -5.4 81 88 -8.5% 21 28 -24.0%

Hurghada US$ 60.0 62.0 -2.0 25 32 -20.7% 15 20 -22.6%

Sharm El Shaikh US$ 60.0 69.0 -9.0 44 50 -12.5% 26 34 -23.1%

Jordan

Amman US$ 58.0 52.0 6.0 151 151 0.4% 88 80 10.2%

Kuwait

Kuwait US$ 47.0 53.0 -6.0 324 251 29.1% 155 133 16.5%

Lebanon

Beirut US$ 52.0 52.0 0.0 180 182 -1.1% 94 96 -1.6%

Oman

Muscat US$ 77.0 76.0 1.0 218 224 -2.7% 169 171 -1.3%

Qatar

Doha US$ 62.0 63.0 -1.0 245 301 -18.7% 153 190 -19.5%

Saudi Arabia

Jeddah US$ 73.0 69.0 4.0 253 248 1.9% 186 173 7.5%

Madina US$ 74.0 65.0 9.0 184 179 2.9% 138 118 16.8%

Makkah US$ 77.0 70.0 7.0 250 249 0.6% 193 176 9.8%

Riyadh US$ 65.0 58.0 7.0 212 226 -6.6% 139 133 5.0%


Abu Dhabi US$ 80.0 81.0 -1.0 202 199 1.2% 163 162 0.8%

Al Ain US$ 74.0 69.0 5.0 150 145 3.9% 112 101 11.0%

Dubai — Beach US$ 76.0 83.0 -7.0 428 390 9.7% 326 325 0.1%

Dubai — City US$ 86.0 83.0 3.0 234 227 3.3% 203 189 7.5%

Dubai — Overall US$ 82.3 83.4 -1.1 305 291 4.8% 251 243 3.4%


Monthly performance: 12/2013 Currency: US$

Various markets monthly performance (US dollar)







Bahrain

Manama BHD 42.0 37.0 5.0 77 78 -1.1% 33 29 10.8%

Egypt

Cairo — City EGP 22.0 38.0 -16.0 491 497 -1.3% 112 190 -41.2%

Cairo — Overall EGP 24.0 39.0 -15.0 500 494 1.2% 121 197 -38.3%

Hurghada EGP 63.0 73.0 -10.0 208 184 13.0% 133 135 -1.3%

Sharm El Shaikh EGP 64.0 75.0 -11.0 298 269 11.1% 192 203 -5.6%

Jordan

Amman JOD 61.0 69.0 -8.0 109 106 3.3% 68 74 -8.4%

Kuwait

Kuwait KWD 55.0 53.0 2.0 86 85 1.4% 48 46 3.7%

Lebanon

Beirut LBP 51.0 54.0 -3.0 256,061 303,815 -15.7% 131,457 166,026 -20.8%

Oman

Muscat OMR 68.0 67.0 1.0 81 79 2.2% 55 53 3.7%

Qatar

Doha QAR 64.0 65.0 -1.0 917 963 -4.8% 595 629 -5.4%

Saudi Arabia

Jeddah SAR 79.0 79.0 0.0 1,024 934 9.6% 812 743 9.3%

Madina SAR 65.0 68.0 -3.0 869 875 -0.7% 568 596 -4.6%

Makkah SAR 69.0 75.0 -6.0 1,158 1,165 -0.6% 811 880 -7.9%

Riyadh SAR 58.0 57.0 1.0 818 849 -3.7% 475 486 -2.4%


Abu Dhabi AED 77.0 76.0 1.0 760 717 6.0% 586 546 7.4%

Al Ain AED 72.0 65.0 7.0 527 514 2.4% 380 335 13.5%

Dubai — Beach AED 77.0 79.0 -2.0 1,403 1,299 8.0% 1,085 1,030 5.3%

Dubai — City AED 82.0 81.0 1.0 795 752 5.8% 654 613 6.7%

Dubai — Overall AED 80.0 80.0 0.0 1,022 960 6.4% 820 774 5.9%


Year over Year performance (January–December) Currency: Local

Various markets Year-to-Date performance (Local currency)







Bahrain

Manama US$ 42.0 37.0 5.0 205 208 -1.1% 87 78 10.8%

Egypt

Cairo — City US$ 22.0 38.0 -16.0 85 86 -1.3% 19 33 -41.2%

Cairo — Overall US$ 24.0 39.0 -15.0 87 86 1.2% 21 34 -38.3%

Hurghada US$ 63.0 73.0 -10.0 36 32 13.0% 23 23 -1.3%

Sharm El Shaikh US$ 64.0 75.0 -11.0 52 47 11.1% 33 35 -5.6%

Jordan

Amman US$ 61.0 69.0 -8.0 155 150 3.3% 96 105 -8.4%

Kuwait

Kuwait US$ 55.0 53.0 2.0 296 292 1.4% 163 157 3.7%

Lebanon

Beirut US$ 51.0 54.0 -3.0 169 201 -15.7% 87 110 -20.8%

Oman

Muscat US$ 68.0 67.0 1.0 210 206 2.2% 144 139 3.7%

Qatar

Doha US$ 64.0 65.0 -1.0 252 265 -4.8% 163 173 -5.4%

Saudi Arabia

Jeddah US$ 79.0 79.0 0.0 273 249 9.6% 216 198 9.3%

Madina US$ 65.0 68.0 -3.0 232 233 -0.7% 152 159 -4.6%

Makkah US$ 69.0 75.0 -6.0 309 311 -0.6% 216 235 -7.9%

Riyadh US$ 58.0 57.0 1.0 218 226 -3.7% 127 130 -2.4%


Abu Dhabi US$ 77.0 76.0 1.0 207 195 6.0% 160 149 7.4%

Al Ain US$ 72.0 65.0 7.0 143 140 2.4% 103 91 13.5%

Dubai — Beach US$ 77.0 79.0 -2.0 382 354 8.0% 296 281 5.3%

Dubai — City US$ 82.0 81.0 1.0 217 205 5.8% 178 167 6.7%

Dubai — Overall US$ 80.0 80.0 0.0 278 261 6.4% 223 211 5.9%


Year over Year performance (January–December) Currency: US$

Various markets Year-to-Date performance (US dollar)





EY | Assurance | Tax | Transactions | Advisory

About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

The MENA practice of EY has been operating in the region since 1923. For over 90 years, we have grown to over 5,000 people united across 20 offices and 15 countries, sharing the same values and an unwavering commitment to quality. As an organization, we continue to develop outstanding leaders who deliver exceptional services to our clients and who contribute to our communities. We are proud of our accomplishments over the years, reaffirming our position as the largest and most established professional services organization in the region.

© 2013 Ernst & Young. All Rights Reserved.

ED 0114

This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither EYGM Limited nor any other member of the global EY organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor.

ey.com/mena

benchmark - ey · pdf filewe hope you enjoy the december 2013 report of the ey middle east...

Documents