Jeddah hotels closed the month of August on a high, with 34.5% growth in Revenue Per Available Room (RevPAR) and 40.2% growth in profits, according to HotStats. Occupancy in Jeddah was up 8.6% point at 70.5% and Average Room Rate (ARR) increased 19.9% to $257.53 in August this year compared to 2011.
RevPAR for the month posted a growth of 34.5%, and Gross Operating Profit Per Available Room (GOPPAR) increased by 40.2% to US$160.38, the highest amongst seven cities surveyed in the MENA region. Performance levels in Riyadh however remained subdued as corporate demand, which is the mainstay of hotels in the city, remained low due to Ramadan and long Eid holidays. ARR remained unchanged at US$225.18, however a 4.9% point drop in occupancy resulted in the Revenue Per Available Room (RevPAR) fall by 14.4% to US$65.39, dragging GOPPAR down by 15.6% points to US$40.61.
“Jeddah hotels continue to benefit from strong demand from domestic tourists, especially during end of Ramadan and long holidays for Eid-al-Fitr. This year, Jeddah and even Riyadh, to an extent, appear to have benefited from the on-going unrest in the Levant as more Saudi tourists are opting for domestic destinations, driving demand for hotels and entertainment facilities. Obviously, hotels apply effective yielding strategies during these peak periods which is reflected in the growth in RevPAR and GOPPAR in Jeddah,” said Peter Goddard, Managing Director, TRI Hospitality Consulting Middle East.