Negative Performance Due to Supply Growth for Jeddah Hotels for April 2018
According to preliminary STR April 2018 data, hotels in Jeddah, Saudia Arabia, saw occupancy decrease 13.5% to 53.5%, ADR increase 4.7% to 822.06 Saudi Arabian riyals ($219.22) and RevPAR decline 9.4% to 439.90 riyals ($117.31).
STR’s preliminary April 2018 data for hotels in Jeddah, Saudi Arabia, indicates negative overall performance due to a jump in supply.
Based on daily data from April, Jeddah reported the following in year-over-year comparisons:
• Supply: +10.1%
• Demand: -4.8%
• Occupancy: -13.5% to 53.5%
• Average daily rate (ADR): +4.7% to SAR822.06
• Revenue per available room (RevPAR): -9.4% to SAR439.90
The absolute occupancy level would be the lowest for an April in Jeddah since 2004, while the absolute RevPAR level would be the lowest for the month since 2008. STR analysts note that heavy investments in the region, which led to a 15.8% increase in supply for 2017, are making it difficult for hoteliers to stabilize RevPAR.
STR will release full April results later this month. The May edition of STR’s Market Forecast will be available at the end of the 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: Market Reports