¬Commenting on the survey, Yousef Wahbah, MENA Head of Transaction Real Estate at EY said: “Several GCC cities, notably Dubai, Manama, Jeddah and Kuwait City recorded positive change in their hospitality Key Performance Indicators (KPIs) in 2013, compared to 2012.

Dubai’s hospitality market witnessed positive growth across all KPIs in 2013 compared to 2012. During 2013, approximately 2,780 new branded hotel rooms all within the 4 and 5 star hotel segment were added to Dubai’s hotel supply, which include Ocean View Hotel, the Ritz Carlton extension on Jumeirah Beach, the Oberoi hotel in Business Bay, Sofitel, Anantara on Palm Jumeriah, Conrad Hotel, Movenpick Hotel in JLT and Novotel in Al Barsha as well as others.

Dubai’s hospitality market has rapidly absorbed this influx of new supply and continues to perform exceptionally well, with a healthy occupancy of 80% being maintained in 2013 combined with an increase of 6.4% in ADR from 2012  resulting in an overall RevPAR of US$ 223 in 2013, an increase of 5.9% from 2012.  Both Abu Dhabi and Al Ain also witnessed an increase in RevPAR of 7.4% and 13.5% respectively in 2013 compared to 2012.

In December 2013, Dubai recorded an increase in RevPAR of 3.4% compared to the same period last year, with occupancy levels dropping marginally by 1.1% from 83.4% in December 2012 to 82.3% in December 2013.

The UAE’s stable occupancy rates and increases in RevPAR in December 2013 can be largely attributed to the peak season for tourism, given the country’s mild winter weather. December has always been a peak month for tourism in the Emirates, attracting visitors from the region, as well as from around the world, to its many tourist attractions.

Manama witnessed an increase in RevPAR of 10.8% during 2013, compared to 2012. Average occupancy in the city increased from 37% in December 2012 to 42% in December 2013. These increases can be attributed to the numerous conferences hosted in Manama in December, including the Annual World Islamic Banking Conference.

Jeddah recorded a 9.3% increase in RevPAR during the year 2013 compared to 2012, mainly due to an increase in corporate demand in the city, as well as the lack of new supply of 4 and 5 star hotel rooms during 2013. In addition, the increase in RevPAR can be credited to the number of conferences held in Jeddah in December, including the Jeddah International Trade Fair, the Linguistics in Arabia Conference, and the 40th ICMM World Congress on Military Medicine event.

Kuwait City also witnessed an increase in RevPAR of 3.7% in 2013, compared to 2012. Although the increase does not seem significant, it should be noted that based on our research, approximately 753 new rooms (mix of 4 and 5 star hotels) have come online in 2013, most notably the Jumeirah Messilah Beach Hotel & Spa which commenced operations in Q2 2013 offering 408 new rooms. Kuwait City also hosted a number of events in December, contributing to the city’s increased RevPAR, most notable of which was the 34th GCC Summit, which took place from the 10-11 of December.

Doha hospitality market witnessed a decrease in RevPAR of 5.4% in 2013 when compared to 2012, mainly due to a decrease in ADR from US$265 in 2012 to US$252 in 2013. In December 2013, Doha’s ADR was US$245 compared to US$301 in December 2012, while average occupancy levels remained relatively consistent at 62%. The drop in ADR has decreased RevPAR from US$190 to US$153 over the same period.

In 2013, the Cairo hospitality market registered the largest drop in RevPAR compared to 2012 out of the countries surveyed within MENA. The city witnessed a RevPAR decrease of 41.2% compared to 2012, due to the continued political uncertainty and security concerns in the city. Although there was no change in ADR between 2012 and 2013, average occupancy in the city decreased from 38% in 2012 to 22% in 2013.

In December 2013, Cairo city’s RevPAR decreased by 26.2% compared to 2012, due to a drop in occupancy of 5% percentage points (pp) during the same period, coupled by a decrease in ADR from US$89 in December 2012 to US$80 in December 2013.

In 2013, average hotel occupancy in Beirut was 51%, a decrease of 3% from 2012, with average room rates decreasing from US$201 to US$169 over the same period, which resulted in a drop in RevPAR of 20.8%.

In December 2013, there was a minimal drop in Beirut’s hospitality KPI’s, a decrease in RevPAR of only 1.6% compared to the same period last year.

Jordan’s hospitality market also witnessed a decline in KPIs, with RevPAR during the year 2013 falling by 8.4% compared to 2012, from US$105 to US$96, mainly due to a decrease in average occupancy during 2013 of 8% over the same period.

However, in December 2013, Jordan witnessed an increase in average occupancy of 6% compared to December 2012, resulting in an increase in RevPAR of 10.2% over the same period.

2013 was a mixed year of performance for the hospitality market in the MENA region. The GCC region recorded positive growth, but markets in the Levant and North African region saw a decline in performance compared to 2012. However, favorable winter weather conditions- compared to other parts of the world- should continue to support the regional hospitality market through the first quarter of 2014.”