In April, a 10.8 percentage point reduction in occupancy levels to 62.3% had a direct impact on the performance of Amman hotels. The lower demand during the month saw both average room rate (ARR) and revenue per available room (RevPAR) fall by 4.3% and 18.5% respectively to US$154.94 and US$96.48. Hotels were able to offset the decline in room revenue with stronger food and beverage demand, which increased by 19.0% and 4.7%. Hotel profits were impacted by higher operating expenses, falling by 25.1% to US$55.26.
In Dubai, a 12.8% reduction in ARR to US$373.78 had a significant impact on profitability in April, falling by 19.5% compared to the same period last year. The combined effect of the falling Euro and stronger US Dollar is one of the key challenges facing the city, forcing hoteliers to reduce ARR in order to maintain occupancy levels at 84.9%. Food and beverage revenues were also impacted, falling by 19.8% and 26.7% respectively, resulting in a 15.7% decline in total revenue per available room (TRevPAR). Higher operating expenses compounded the lower overall revenues, forcing gross operating profit per available room (GOPPAR) down by 19.5% to US$273.13.
Click to read full article (with graph): Hospitality Net
