Bahrain
Kuwait
Oman
Middle East
GDN Online App available on
App Store / Play Store
Gulf Daily News Gulf Daily News
Gulf Daily News Gulf Daily News Gulf Daily News Gulf Daily News Gulf Daily News
Saturday, July 21, 2018 ARCHIVES  |  SEARCH  |  POST ADS  |  ADVERTISE  |  SUBSCRIBE   |  LOGOUT   |  CONTACT US

Bahrain hotels see rise in occupancy

Bahrain Business
Fri, 08 Dec 2017
Avinash Saxena


MANAMA: Hotels in Bahrain recorded a 1.3-percentage point increase in room occupancy to 51.6 per cent during October.

However, this was not sufficient to offset a 3.8pc drop in achieved average room rate, to $162.28, and revenue per available room (RevPAR) fell by 1.3pc in the month to $83.76, finds a report by market intelligence provider HotStats.

Further declines were recorded in non-rooms revenues, including food and beverage (down 5.1pc), which contributed to the 3.1pc drop in TrevPAR, to $136.21.

However, the drop in revenue was overturned with cost cutting, which included a 0.4 percentage point saving in payroll, to 34.8pc of total revenue, enabling hotels in Manama to record a 4pc increase in profit per room, to $33.07.

Despite the efforts of hoteliers in Manama, GOP PAR for year-to-date 2017 fell by 7.7pc to $42.52.

The firm explained the terms that define the key metrics used to assess performance.

Occupancy measured in percentage is that proportion of the bedrooms available during the period which are occupied during the period.

Average Room Rate (ARR) is the total bedroom revenue for the period divided by the total bedrooms occupied.

Room Revpar (RevPAR) is the total bedroom revenue for the period divided by the total available rooms.

Total Revpar (TRevPAR) is the combined total of all revenues divided by the total available rooms.

Payroll percentage is the payroll for all hotels in the sample as a percentage of total revenue.

GOP PAR is the total gross operating profit for the period divided by the total available rooms.

The report said whilst hotels in Middle East and Africa recorded a 1.9pc year-on-year increase in GOP PAR in October, the periods of decline recorded across 2017 threaten to undermine the positive months of performance, according to the latest worldwide poll of full-service hotels from HotStats.

A 3.1pc decline achieved average room rate to $178.09 in October, was more than offset by a 4.8-percentage point increase in room occupancy, to 68.5pc, which underpinned the 4.1pc increase in RevPAR, to $121.96.

In addition to the growth in rooms revenue, hotels in the region recorded increases in non-rooms revenues, including food and beverage (up 1.4pc) and conference and banqueting (up 1.2pc), which contributed to the 2.7pc increase in TrevPAR, to $208.13.

However, challenges remain in the economy of the Middle East and Africa, particularly in the oil exporting countries, which has impacted trading performance in the medium-term.

“The rollercoaster performance of hotels in the Middle East and Africa continued in October. Although hotels in the region have successfully recorded six months of year-on-year profit per room growth in 2017, the remaining five months have seen GOP PAR levels declining at a more rapid rate. As a result, it is hard to see hotels in the region recording a positive outcome for the year,” said HotStats chief executive Pablo Alonso.

STR, which tracks supply and demand data for the global hotel industry, had reported that hotels in Bahrain saw a 9.2pc increase in occupancy to 49.2pc during October.

However, there was a 8.2pc fall in average daily rate (ADR) to BD58.71 and a 0.2pc growth in RevPAR to BD28.86.

STR analysts said that the year-over-year increase in occupancy came in comparison with a low base from October last year.

The country’s absolute occupancy level was helped by events in Manama.

The overall negative trend for the regional hospitality sector was a continuation from September, which according to professional services firm EY’s Mena Hotel Benchmark Survey Report, saw hotels in the Middle East reporting an overall decline in performance across occupancy and average room rate parameters, resulting in a revenue per available room performance drop across most of the international branded four- and five-star hotels.

“While occupancy rates are fluctuating throughout the Mena region, the average room rate in the majority of hospitality markets has declined, affecting the RevPAR performance across the four- and five-star hotel segment. Having said that, as the year draws to a close, the hospitality market is entering what are historically the stronger performing months of the year, so we may see an improved performance in the sector when compared with previous months,” said EY Mena Real Estate, Hospitality and Construction Sector leader Yousef Wahbah.

avinash@gdn.com.bh

You Might Like