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Egypt’s hotel market records 50% y-o-y decline in H1 2020: Colliers - Daily News Egypt

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Egypt’s hotel market records 50% y-o-y decline in H1 2020: Colliers

Branded hotel keys is projected to increase to 83,100 in FY 2020


The novel coronavirus (COVID-19) pandemic continues to have a marked impact on the hospitality industry, both in Egypt and internationally.

In the year to date (YTD), the second quarter (Q2) of 2020 is marked by significant declines in demand across the Egyptian market, with most markets experiencing occupancies of below 10% in the quarter.

The leisure markets in the Red Sea, Sharm El-Sheikh and Hurghada have experienced low occupancies in Q2 of 2020. This resulted in a year-on-year (y-o-y) decline of over 50% in the first half (H1) 2020.

As a knock on effect, this has resulted in many forced closures and a decline in revenue per available room (RevPar) of 55% and 52% in the Sharm El-Sheikh and Hurghada markets, respectively. The Alexandria market is the only one to have recorded a growth in average daily rate (ADR) in H1 of 2020. However, the more competitive inflation rate compared to H1 of 2019 plays a factor.

An additional 6,000 keys are expected to open in the Egyptian market by the full year 2022. The forthcoming supply might experience delays due to the impact of the global pandemic on projects under construction.

The Red Sea markets of Hurghada and Sharm El-Sheikh account for 62% of the forthcoming branded supply in the Egyptian markets.

Hotel supply in Egypt recorded 81,900 branded hotel keys in Q2 of 2019, remaining the same in Q2 of 2020. It is expected that branded hotel keys will increase in FY 2020 to reach 83,100, maintaining its growth to register 85,800 keys in FY 2021, to reach 88,700 keys in FY 2022.

Colliers reported that no change in branded supply between Q2 of 2019 and Q2 2020 in the Cairo hotel market.

Topics: Colliers hotel

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https://dailyfeed.dailynewsegypt.com/2020/08/16/egypts-hotel-market-records-50-y-o-y-decline-in-h1-2020-colliers/
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