Despite Occupancy Decline Jeddah Hotels Report 10.1 Percent RevPAR Increase for October 2017
Preliminary October 2017 data for Jeddah, Saudi Arabia, shows hotels in the market saw occupancy decline 3% to 50.4%, but a 13.5% ADR increase to 871.40 Saudi Arabian riyals ($232.31) pushed RevPAR up 10.1% to 439.60 Saudi Arabian riyals ($117.19).
STR’s preliminary October 2017 data for hotels in Jeddah, Saudi Arabia, indicates rate-driven performance growth.
Based on daily data from October, Jeddah reported the following in year-over-year comparisons:
- Supply: +12.5%
- Demand: +9.1%
- Occupancy: -3.0% to 50.4%
- Average daily rate (ADR): +13.5% to SAR871.40
- Revenue per available room (RevPAR): +10.1% to SAR439.60.
Significant demand growth year over year was not enough to keep pace with a spike in supply. That imbalance coupled with higher rates led to the lowest October occupancy level in Jeddah since 2004. STR analysts note performance fluctuations have been common in Jeddah this year.
STR will release full October 2017 results later this month.
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 10 countries around the world with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.
Categories: Hotel Industry News