Benchmark. Middle East hotel benchmark survey report September 2015

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1 Benchmark Middle East hotel benchmark survey report September 215 The hotel benchmark report provides a monthly performance overview of leading hotels in the Middle East. The hotel set includes international branded and operated properties across the ve star and four star segments.

2 Yousef Wahbah Partner and Head of MENA Transaction Real Estate, Ernst & Young Middle East, UAE EY Middle East hotel benchmark survey We hope you enjoy the September 215 report of the EY Middle East hotel benchmark survey. Inside we cover occupancy and rate performance in key hotel markets across selected countries and cities in the Middle East on a monthly and year-to-date basis in local currencies and US dollars. This monthly Middle East hotel benchmark survey is part of our services to the hospitality sector. The EY Transaction Real Estate Advisory Services team, headquartered in Dubai, is the leading business advisory practice in the region. Our team consists of professionals from around the globe with extensive real estate, hospitality operations and advisory experience. We understand and offer a full scope of multidisciplinary services for developers, lenders, owners and operators. Our specialist services include acquisitions, capital sourcing, highest- and best-use analysis, due diligence, market and nancial feasibility studies, management company selection/contract reviews, strategic business planning, repositioning analysis, operational enhancement/diagnostics, valuations/appraisals and disposition, for every real estate industry segment,such as hotel, residential, commercial, retail, restaurant, golf, marina, theme park and convention center. EY is the largest professional services organi ation in the Middle East with 2 of ces in 15 countries and is part of the global EY organization with more than 19, people in 1 countries. Page 3: September 215 key performance highlights Page 4: We have highlighted the largest variance on a per-month basis for the various markets over the last12-month period in regards to occupancy, average room rate, and rooms yield Page 5: Dubai overall occupancy, average room rate and rooms yield over the past 12 months Page 6: Monthly performance of various markets compared to the previous year s monthly period in local currency Page 7: Monthly performance of various markets compared to the previous year s monthly period in US dollars Page 8: Year-to-date performance of various markets compared to the previous year. In local currency Page 9: Year-to-date performance of various markets compared to the previous year. In US dollars 2 Benchmark September 215

3 September 215 Key Performance Highlights Hospitality markets in Ras Al Khaimah, Manama and Makkah witnessed a positive increase when compared to the same period last year In September 215, Ras Al Khaimah s hospitality market witnessed a double digit increase in RevPAR of 55.5% when compared to the same period last year. This was mainly due to the increase in ADR from US$98 in September 214 to US$141 in September 215. Occupancy has also increased from 58.3% in September 214 to 63.% compared to the same period last year, this could be attributed to the effort of Ras Al Khaimah s Tourism Development Authority that continues to promote RAK as a primary affordable luxury destination Manama s hospitality market has witnessed an increase in RevPAR from US$11 in September 214 to US$125 in September 215. This was mainly due to the increase in average occupancy by 9.% in September 215 when compared to the same time last year. The increase in rooms yield may be ascribed to several conferences that were held during the month of September 215, such as MEPEC the Middle East Process Engineering Conference and the Middle East Non Destructive Testing Conference Makkah s hospitality market outperformed during the month of September 215 with an increase in RevPAR by 83.2% when compared to the same period last year. Occupancy increased from.% in September 214 to 72.% in September 215, this was mainly due to the fact that many Pilgrims arrive to Makkah to perform Hajj Kuwait and Riyadh s hospitality market performance dropped when compared to September 214 Kuwait s hospitality market continues to fall month over month, with RevPAR dropping from US$13 in September 214 to US$91 in September 215, this was mainly due to the decrease in occupancy by 14.% in September 215 when compared to the same period last year In September 215, Riyadh s hospitality market witnessed a decrease in occupancy by 13.% when compared to the same period last year. ADR dropped from US$215 in September 214 to US$22 in September 215, which resulted in a drop in RevPAR by 16.9% in September 215 when compared to the same time last year, this may be ascribed to the Saudis that tend to travel to other destinations due to the Eid Holidays Abu Dhabi and Dubai s hospitality witness a decrease in September 215 In September 215, Abu Dhabi s average occupancy rate dropped by 3.% when compared to the same period last year. Average daily room rates also declined by 9.1% from US$136 in September 214 to US$124 in September 215, causing RevPAR to fall by 12.3% in September 215 when compared to the same time last year Dubai s overall hospitality market has observed a drop in RevPAR by 3.4% in September 215 when compared to the same period last year, mainly due to ADR dropping by 4.% from US$22 in September 214 to US$194 in September 215 The slowdown of growth in both Abu Dhabi and Dubai s hospitality sector may primarily be attributed to the decline in tourists from Europe (as a result of economic slowdown in the Eurozone and weakening of the Euro) and an increase in the supply of hotel rooms Hospitality markets with the highest year to date (YTD) KPI s (up to September 215) The highest year-to-date 215 gures were reported from Dubai-beach with an ADR of US$352 The highest market performance was observed in Dubai overall at a occupancy of 79% year-to-date Despite a 2.3% decline as compared to 214, Dubai beach continued its trend of being the highest yielding market in MENA with US$28 (YTD) Benchmark 3

4 Markets with the largest variance on a per month basis % Occupancy for Riyadh Hotels 9 Occupancy % September 214 September 215 Occupancy % Average Room Rate for Beirut (US$) 2 Average room rate September 214 September 215 Average room rate RevPAR in Cairo City (US$) 7 Room yield September 214 September Room yield Benchmark September 215

5 Dubai overall monthly performance % Occupancy for Dubai Overall hotels 1 Occupancy % September 214 September Occupancy % Average room rate for Dubai Overall hotels (US$) Average room rate September 214 September Average room rate RevPAR in Dubai Overall hotels (US$) Room yield September 214 September Room yield Benchmark 5

6 Selected markets monthly performance (local currency) EY Middle East hotel benchmark survey Monthly performance: September 215 Currency: local Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points Change Change Bahrain Manama BHD % % Egypt Cairo City EGP % % Jordan Amman JOD % % Kuwait Kuwait KWD % % Lebanon Beirut LBP , ,5 2.4% 139, ,126 3.% Oman Muscat LBP % % Qatar Doha QAR % % Saudi Arabia Jeddah SAR ,258 1, % 1, % Madina SAR , % % Makkah SAR , % % Riyadh SAR % % United Arab Emirates Abu Dhabi AED % % Dubai Beach AED ,18 1,29 1.% % Dubai City AED % % Dubai Overall AED % % RAK Beach AED % % RAK City AED % % RAK Overall AED % % Notes Figures may not add up due to rounding. Cairo Overall includes Cairo City and Cairo Pyramid Hotels. Dubai Overall includes Dubai Beach, Dubai City and Dubai Apartment Hotels. The Middle East hotel benchmark survey was developed and is maintained by EY s Dubai of ce under the direction of Yousef Wahbah who leads the Transaction Real Estate Advisory Services group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, we have not performed an audit or review of the information gathered and do not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of EY and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of EY. All requests to reproduce this information must be addressed to yousef.wahbah ae.ey.com. For information regarding the hotel benchmark, contact the Dubai of ce at Benchmark September 215

7 Selected markets monthly performance (US dollars) EY Middle East hotel benchmark survey Monthly performance: September 215 Currency: US$ Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points Change Change Bahrain Manama US$ % % Egypt Cairo City US$ % % Jordan Amman US$ % % Kuwait Kuwait US$ % % Lebanon Beirut US$ % % Oman Muscat US$ % % Qatar Doha US$ % % Saudi Arabia Jeddah US$ % % Madina US$ % % Makkah US$ % % Riyadh US$ % % United Arab Emirates Abu Dhabi US$ % % Dubai Beach US$ % % Dubai City US$ % % Dubai Overall US$ % % RAK Beach US$ % % RAK City US$ % % RAK Overall US$ % % Notes Figures may not add up due to rounding. Cairo Overall includes Cairo City and Cairo Pyramid Hotels. Dubai Overall Includes Dubai Beach, Dubai City and Dubai Apartment Hotels. The Middle East hotel benchmark survey was developed and is maintained by EY s Dubai of ce under the direction of Yousef Wahbah who leads the Transaction Real Estate Advisory Services group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, EY has not performed an audit or review of the information gathered and do not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of EY and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of EY. All requests to reproduce this information must be addressed to yousef.wahbah ae.ey.com. For information regarding the hotel benchmark, contact the Dubai of ce at Benchmark 7

8 Selected markets year to date performance (local currency) EY Middle East hotel benchmark survey Year to Date Performance ( anuary 215 September 215) Currency: local Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points Change Change Bahrain Manama BHD % % Egypt Cairo City EGP % % Jordan Amman JOD % % Kuwait Kuwait KWD % % Lebanon Beirut LBP , , % 153,345 13, % Oman Muscat LBP % % Qatar Doha QAR % % Saudi Arabia Jeddah SAR ,81 1,3 7.8% % Madina SAR % % Makkah SAR % % Riyadh SAR % % United Arab Emirates Abu Dhabi AED % % Dubai Beach AED ,293 1, % 1,29 1,53 2.3% Dubai City AED % % Dubai Overall AED % % RAK Beach AED % % RAK City AED % % RAK Overall AED % % Notes Figures may not add up due to rounding. Cairo Overall includes Cairo City and Cairo Pyramid Hotels. Dubai Overall includes Dubai Beach, Dubai City and Dubai Apartment Hotels. The Middle East hotel benchmark survey was developed and is maintained by EY s Dubai of ce under the direction of Yousef Wahbah who leads the Transaction Real Estate Advisory Services group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, we have not performed an audit or review of the information gathered and do not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of EY and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of EY. All requests to reproduce this information must be addressed to yousef.wahbah ae.ey.com. For information regarding the hotel benchmark, contact the Dubai of ce at Benchmark September 215

9 Selected markets year to date performance (US dollars) EY Middle East hotel benchmark survey Year to Date Performance ( anuary 215 September 215) Currency: US$ Occupancy Average room rate Rooms yield Currency 215% 214% Change in % points Change Change Bahrain Manama US$ % % Egypt Cairo City US$ % % Jordan Amman US$ % % Kuwait Kuwait US$ % % Lebanon Beirut US$ % % Oman Muscat US$ % % Qatar Doha US$ % % Saudi Arabia Jeddah US$ % % Madina US$ % % Makkah US$ % % Riyadh US$ % % United Arab Emirates Abu Dhabi US$ % % Dubai Beach US$ % % Dubai City US$ % % Dubai Overall US$ % % RAK Beach US$ % % RAK City US$ % % RAK Overall US$ % % Notes Figures may not add up due to rounding. Cairo Overall includes Cairo City and Cairo Pyramid Hotels. Dubai Overall includes Dubai Beach, Dubai City and Dubai Apartment Hotels. The Middle East hotel benchmark survey was developed and is maintained by EY s Dubai of ce under the direction of Yousef Wahbah who leads the Transaction Real Estate Advisory Services group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney, or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, EY has not performed an audit or review of the information gathered and do not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of EY and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of EY. All requests to reproduce this information must be addressed to yousef.wahbah ae.ey.com. For information regarding the hotel benchmark, contact the Dubai of ce at Benchmark 9

10 EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. The MENA practice of EY has been operating in the region since For over 9 years, we have grown to over 5, people united across 2 offices and 15 countries, sharing the same values and an unwavering commitment to quality. As an organization, we continue to develop outstanding leaders who deliver exceptional services to our clients and who contribute to our communities. We are proud of our accomplishments over the years, reaffirming our position as the largest and most established professional services organization in the region. 215 EYGM Limited. All Rights Reserved. ED none This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. ey.com/mena