Jeddah Hotels Report 12.1 Percent RevPAR Decline for December 2017
Preliminary data for December 2017 for Jeddah, Saudi Arabia, shows hotels in the market saw occupancy decline 8.4% to 45.1%, ADR dropped 4.1% to 694.85 Saudi Arabian riyals ($187.68) and RevPAR also fell 12.1% to 313.45 Saudi Arabian riyals ($84.66).
STR’s preliminary December 2017 data for hotels in Jeddah, Saudi Arabia, indicates significant supply growth and negative performance.
Based on daily data from December, Jeddah reported the following in year-over-year comparisons:
- Supply: +7.0%
- Demand: -2.0%
- Occupancy: -8.4% to 45.1%
- Average daily rate (ADR): -4.1% to SAR694.85
- Revenue per available room (RevPAR): -12.1% to SAR313.45.
STR analysts note that while room demand has fallen, a jump in new supply continues to worsen occupancy levels and pressure rates. The absolute occupancy level would be the lowest for any December on record in Jeddah, while the ADR value would be the lowest for a December since 2010.
STR will release full December and total-year 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