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October: figures are down for most hoteliers in the Middle East

The month of October shows a drop in hotel activity in most Middle Eastern destinations. While decreases in the Revenue per available room are often double-digit, Morocco and Algeria manage to resist.

Monthly results of hotel chains by country
October 2015

Results in North Africa are quite varied from one country to the next. Morocco is on a stable trend this month with RevPARs similar to last year's, an ADR down by 0.6% and OR up by 0.4 points. Tunisia posts a strong decrease in its RevPAR by 14.2% due to terrorist attacks in recent months that pulled the country's occupancy rate down by 11.9 pts. However, Algeria's RevPAR rose by 11.5% thanks to "International Building Expo" (October 12-15) and "MICA 2015 Exhibition".

After three quarters on a positive trend, Egypt's RevPar records a slight drop this month, particularly due to results in Sharm el Sheikh (RevPAR: -32.1%). The overall occupancy rate remains stable this month (+0.4%).

Despite no change in its OR (+0.0 pts), Turkey records a RevPAR down by 15.1% due to an ADR that fell. Istanbul's results are the primary reason for this negative trend.

In Jordan, the RevPAR fell by 14.0% this month, due to an ADR down by 13.3% and OR up by only 0.5 points. This trend is stronger in Lebanon which saw a sharper drop in its RevPAR (-22.9%) and an OR down by nearly 10 points.

On the Arabian Peninsula, Saudi Arabia recorded a strong decrease in its RevPAR by 14.3%. The Kingdom of Saudi Arabia welcomed Muslims from around the world for the "El Hajj" pilgrimage for many weeks in October 2014, whereas this year it took place in September. Makkah thus recorded a very sharp drop in its RevPAR by 41.4%.

Kuwait (-14.5%), UAE (-9.1%) and Oman (-6%) also experienced a decline in hospitality activities despite the organization of major events for the hotel industry. "KOGS 2015" was hosted in Kuwait City from October 11-14, "INFRA Oman Exhibition" in Muscat from October 05-07, and the "Middle East Franchise Expo" in Dubai from October 20-21 and the "Gulfood Manufacturing 2015" from October 27-29.

Bahrain and Qatar are also on a negative trend this month, with a RevPAR down by 23.3% and 2.4% respectively. The OR fell by 8 points in Manama and 5.1 points in Doha. Qatar, meanwhile, posted an occupancy rate up by 4.1% thanks to the organization of "Hospitality Qatar 2015" from October 13-15 and "Qatar International Boat Show" from October 25-29.

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