Hotel occupancy in Bahrain drops

Hotels in Bahrain suffered a decline in revenue and occupancy in 2015, according to a new report. Hotels experienced decreases in occupancy of 7.6 per cent to 51.5pc and revenue per available room (RevPAR) also fell by 2pc.

STR Global, a provider of hotel industry data and reports, added that ‘although Manama’s overall performance for the year dropped, the market did have some notable achievements in 2015. There was a positive upswing
in September as a result of the Muslim holiday Eid al-Adha, when demand growth (+22.6pc) outpaced supply growth (+14.2pc), resulting in a significant RevPAR growth
(+27.5pc).’

Entire Middle East suffered a decline in 2015, according to the report. “Compared with 2014, the Middle East subcontinent reported a 2pc decrease in occupancy to 67.4pc. Average daily rates (ADR) for the year were down 2.6pc to $192.82 and RevPAR dropped 4.6pc to US$129.98,” it says.

The report further added that Saudi Arabia saw a 2.6pc decrease in occupancy to 62.4pc but increases in ADR (+3.6pc to SAR799.38) and RevPAR (+0.9pc to SAR498.49). 

According to STR Global analysts, the country’s conflict with Yemen and
the oil price decline have affected hotel performance in recent months. However, rate growth drove a slight RevPAR increase for the
year. 

The United Arab Emirates reported decreases in each of the three key performance metrics: occupancy (-0.6pc to 74.8pc), ADR (-6.2pc to AED705.75) and RevPAR (-6.7pc to AED528.19). Supply growth
(+6.2pc) outpaced demand growth (+5.6) in 2015, causing the decline in occupancy, and nearly flat revenue led to the declines in ADR and
RevPAR.

Also,  Egypt recorded a 4.2pc increase in occupancy to 53.7pc as well as double-digit growth in ADR (+18.9pc) and RevPAR (+23.9pc). 

Egypt’s RevPAR increased year over year by more than 40pc in six of the first seven months in 2015. 

Following the October plane crash in the Sinai Peninsula, flights to Sharm el-Sheikh from many destinations were placed on hold until March 2016, creating a knockdown affect in hotel
performance. 

Other markets, including Cairo and Hurghada, helped performance in Egypt carry on, with ADR up countrywide by 11.5pc in December.