The latest report by analytics firm STR has revealed some troubling numbers regarding Bahrain’s hotel industry.
“Bahrain reported only 14 days with revenue per available room (RevPAR) growth in May, most of which came at the end of the month. STR analysts note that the country’s year-over-year performance was affected by the Ramadan calendar shift as well as a surplus in new supply (+9.1%),” the report explains.
“The trend of new rooms entering the market is likely to continue as Bahrain currently has 2,184 rooms in construction, roughly 13% of the country’s existing supply.”
Occupancy dropped 24.6% to 40.1%, whereas average daily rates’ (ADR) drop by 12.4% left it at a value of $157.95 (BHD 59.76). RevPAR dropped 33.9% to $63.41 (BHD23.99).
STR data from late 2017 showed similarly stunted figures, with ADR having dropped to its lowest October mark in 11 years, at $155.20 (BHD 58.71). Occupancy was 49.2% at the time.
Ali Ghulam Murtaza, director of real estate, tourism and leisure for the Bahrain Economic Development Board, said there is a sum of $13 billion invested in 14 hotel real estate projects, which include the world’s largest Wyndham Garden hotel, with 441 rooms.
He added that in 2017, tourism accounted for 6.3% of Bahrain’s GDP.
As for the rest of the Middle East, STR data shows similarly gloomy prospects.
Occupancy dropped 10.7% to 57%, and revenue per available room dropped 9% to $86.45.
With the summer season right around the corner, and Dubai International Airport reporting it will accommodate 1 million passengers in the span of 3 days in early July, the Middle East’s hotel sector could be looking to make a recovery in the next couple of months.
Source Credit: AMEInfo