Sharm El-Sheikh and Hurghada hotels continued to grow from their low performance in the first quarter of 2017, and maintained their status as touristic hotspots with a forecasted growth of 84% and 72% respectively in revenues per available rooms (RevPAR), according to Colliers International’s The MENA Hotel Forecast January 2018 report.
The witnessed rebound is a result of recovering from the effects of the downing of a Russian Metrojet in 2015, and the better security perception, the report indicates. Colliers forecasts that the this trend will continue in the first quarter of 2018.
Moreover, the report indicates that Cairo’s hotels are forecasted to witness 20% growth in RevPAR in the same period, while Alexandria’s hotels are expected to witness a moderate increase of around 13% in RevPAR.
According to the report, both Saudi Arabia’s Madinah and Jeddah maintained their confident and steady performance due to the return of the Umrah season, with -1% and 0% expected RevPAR growth respectively.
On the other hand, the UAE’s Fujairah and Bahrain’s Manama continue to feel the negative consequences of decline in leisure demands, and limited corporate and MICE (meetings, incentives, conventions, and events) demand. Fujairah and Manama are expected to respectively witness 8% and 7% decline in RevPAR from January 2018 to March 2018.
Moreover, the UAE’s Sharjah, Abu Dhabi city, and Abu Dhabi beach are forecasted to witness a growth in RevPAR of 10%, 7%, and 6% respectively during the same period.
Colliers International Hospitality division is a global network of specialist consultants in the hotel and resorts sector.