Shift in Ramadan impacts Middle East &amp adversely; North Africa hotels’ June profits

Shift in Ramadan impacts Middle East &amp adversely; North Africa hotels’ June profits

eTurboNews Syndication:

Hotels in the Middle East & North Africa recorded a 6.4% year-on-year decline in profit per room in June, the month of Ramadan mostly fell in-may as, and hotels in your community missed their usual demand bump, in line with the latest data tracking hotels.

Despite a 10.the month to 65 2-percentage-point increase in room occupancy in.0%, it had been at the trouble of achieved average room rate, which plummeted by 18.0% YOY to $149.12.

Further to the year-to-date peak recorded in-may at $183.65, achieved average room rate fell back by almost $35 this month.

This was led by significant rate declines across all key segments, including Corporate (down 8.8%), Individual Leisure (down 20.2%) and Group Leisure (down 32.8%).

The 2.7% decline in RevPAR was tempered by a rise in ancillary revenues, including a 0.2% uplift in food & beverage revenue and a 17.8% jump in leisure revenue.

As a total result, TRevPAR at hotels in MENA fell by 1.4% in June to $171.34.

And despite their finest efforts to control costs, illustrated by the 0.1% saving in payroll to $56.83 per available room, profit levels at MENA hotels fell to $47.the month 25 in.

This was the cheapest profit per room recorded in 2019 and 57.1% below the year-to-date figure of $74.21.

Profit & Loss Key Performance Indicators – Middle East & Africa (in USD)

KPI June 2019 v. June 2018
RevPAR -2.7% to $96.91
TRevPAR -1.4% to $171.34
Payroll -0.1% to $56.83
GOPPAR -6.4% to $47.25

Some of the negativity is probable from the timing of Ramadan, that is a large demand generator for hotels. It really is dictated by the lunar cycle, this season there have been four days of Ramadan in June and, in comparison to 16 days in 2018.

The shift was impactful for hotels in Makkah particularly, which suffered a 69.8% YOY drop in profit per room to $120.54; albeit, this is on the relative back of a superb May, when GOPPAR hit a recently available most of $472.27.

For hotels in Makkah, the drop in profit was as a complete consequence of a decline across all revenue centres, led by way of a 59.5% reduction in RevPAR to $170.69, adding to a 58.7% YOY decline in TRevPAR to $220.83.

On the surface of the Ramadan shift, a string of recent hotel openings has been detrimental to the city’s demand.


GOT NEWS? click here

possible to reach millions worldwide
Google News, Bing News, Yahoo News, 200+ publications


Profit & Loss Key Performance Indicators – Makkah (in USD)

KPI June 2019 v. June 2018
RevPAR -59.5% to $170.69
TRevPAR -58.7% to $220.83
Payroll -17.0% to $41.09
GOPPAR -69.8% to $120.54

Meanwhile, the timing of Ramadan, or even more Eid al-Fitr specifically, was of great benefit to hotels in Al Khobar, weekend because the end of the fasting period was marked by a protracted holiday.

As a complete consequence of the boost popular, hotels in the Saudi Arabian coastal city recorded 13.2-percentage-point YOY upsurge in room occupancy to 61.4%, which contributed to a 21.3% upsurge in RevPAR to $84.85.

And regardless of an 8.1% a drop in ancillary revenues, TRevPAR at hotels in Al Khobar increased by 8.6% overall to $133.92.

The growth in top-line performance was sufficient for hotels in the populous city to record a 78.2% YOY upsurge in profit per room, which hit $36.20.

Still, this is a lot more than 30% below the year-to-date figure and was a final bump before hotels in the resort city quiet down for the summertime.

Profit & Loss Key Performance Indicators – Al Khobar (in USD)

KPI June 2019 v. June 2018
RevPAR +21.3% to $84.85
TRevPAR +8.6% to $133.92
Payroll -2.3% to $49.99
GOPPAR +78.2% to $36.20

Author: George Taylor

Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.