Colliers International, a commercial real estate company, published on Thursday its three-month rolling forecast for November until January 2017.
The report marked Cairo and Alexandria as tourism hot spots, explaining that Cairo witnessed a 13% increase in revenues per available rooms (RevPAR) because it is a stable corporate tourism destination. The report added that the leisure demand followed by strong destination marketing and recent political stability is expected to maintain RevPAR levels above last year.
Colliers said that Alexandria’s continued surge in RevPAR is attributed to its growing average daily rate (ADR) levels, which over the last six months have been on average 26% higher than the 2015 performance. As a result, hotels’ profitability is expected to be further enhanced, says Colliers.
Regarding Hurghada, the report said that the 2016 RevPAR performance for resorts in the Red Sea is now on par with the 2015 performance, given the drop it witnessed following the Russian aeroplane crash in October 2015.
Colliers added that the lifting of travel bans for traditional source markets such as Germany is expected to further improve the RevPAR performance for Hurghada.
From other destinations in the Middle East, Colliers anticipated a slow recovery in Amman in both occupancy and ADR as a result of stable corporate and leisure demand.
The report added that the Amman hotel market is growing from a relatively low RevPAR base in 2015, and has been one of the steadiest performers in the MENA region since the second quarter of 2016.
Colliers said that the Doha Serviced Apartments segment, which witnessed a drop of 21% in RevPAR, has been underperforming as of late due to the freezing of public and private sector spending and a number of redundancies impacting long business stays.
The report noted that the Doha airport/city centre, which dropped by 20% in RevPAR, remains in a situation similar to other sub-markets of Doha, as reduced corporate activity continues to impact RevPAR levels.