Middle East hotel sector recorded robust recovery in 2022

Middle East hotel sector recorded robust recovery in 2022

Average RevPaR increased by 18% across the region compared to 2019

According to hospitality insights and analytics provider STR, hotels in the Middle East recorded an average revenue per available room (RevPaR) of US$110 during 2022, reflecting an increase of 18% over the figures recorded in 2019.

The occupancy rate of the hotel sector reached 64% during the year. The figure represents a 3% decline from the 2019 rates, but the average daily rate (ADR) increased by 22% to US$173.

In other regions, Asia saw the only decline in revenue per available room (RevPAR) last year when compared to 2019.

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Analysing the data, STR managing director Robin Rossmann commented: “The industry’s resilience has been underpinned by significant pent-up leisure travel over the summer along with the return of corporate demand, as the nature and length of this business travel has evolved.

“Unlike previous downturns, room rates have been the key driver of recovery as each of the global regions, excluding Asia, showed an ADR increase over 2019. Though occupancy came in below the pre-pandemic comparables, the metric is anticipated to stabilise throughout 2023. Despite economic headwinds, the industry is operating from a position of strength in the new year.” 

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