HotStats Releases MENA Annual Hotel Performance Tracker 2020
LONDON—HotStats, the global leader in monthly profitability data benchmarking for the hotel industry, has released findings of Middle East & North Africa hotel performance for 2019, in its “Profit Matters: MENA Annual Hotel Performance Tracker.”
The report tracked data for the total MENA region and individually highlighted performance for Dubai, Abu Dhabi, Doha, Riyadh and Cairo. The report includes data on revenue and expense pertaining to the Rooms, Food & Beverage and Undistributed departments and features updated data on the impact from COVID-19.
According to the published report, the total MENA region decreased year-over-year on both the revenue and profit sides of the ledger. Total revenue (TRevPAR) was down 5.8% compared to 2018, while profit (GOPPAR) declined 9.3% over the same period. The overall drop in revenue was impacted by a drop in RevPAR, accentuated by a 9.1% YOY decrease in average room rate.
The region’s prospects for a bounce-back performance in 2020 were all but dashed by the advent and spread of the coronavirus, which is laying waste on the global hospitality industry. February data shows the impact on MENA, with GOPPAR dropping 9.5% YOY. It came after a January that got the new year off on the right foot, with a 9.0% YOY gain in GOPPAR. March data will predictably be worse.
“In regards to performance, the MENA region has gone through a rough patch of late, with gross operating profit per available room dropping 10.7% from 2017 to 2019,” said Michael Grove, Managing Director, EMEA, HotStats. “Hoteliers were hoping for a brighter 2020, but COVID-19 has all but dashed those hopes. Moving through the year, hotels will be hard-pressed to build back occupancy and will likely be operating at a revenue shortfall. It will be incumbent upon hoteliers to flex cost to retain some modicum of profitability. Unfortunately, until travel demand from leisure, corporate and group gets back to some semblance of normalcy, hoteliers will remain in an unenviable position.”