Ernst & Young Middle East Hotel Benchmark Survey
Ernst & Young Middle East Hotel Benchmark Survey
Ernst & Young Middle East Hotel Benchmark Survey
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>Middle</strong> <strong>East</strong><br />
<strong>Hotel</strong> <strong>Benchmark</strong><br />
<strong>Survey</strong><br />
November 2009
Introduction<br />
Introduction<br />
<strong>Ernst</strong> & <strong>Young</strong> <strong>Middle</strong> <strong>East</strong> <strong>Hotel</strong> <strong>Benchmark</strong> <strong>Survey</strong><br />
We hope you enjoy the November 2009 report of the <strong>Ernst</strong> & <strong>Young</strong> <strong>Middle</strong> <strong>East</strong><br />
<strong>Hotel</strong> <strong>Benchmark</strong> <strong>Survey</strong>.<br />
Inside we cover occupancy and rate performance in key hotel markets across<br />
selected countries and cities in the <strong>Middle</strong> <strong>East</strong> on a monthly and year-to-date<br />
basis in local currencies and US dollars.<br />
This monthly <strong>Middle</strong> <strong>East</strong> <strong>Hotel</strong> <strong>Benchmark</strong> <strong>Survey</strong> and our monthly Spa Industry<br />
<strong>Benchmark</strong> <strong>Survey</strong> are part of our services to the hospitality sector.<br />
<strong>Ernst</strong> & <strong>Young</strong>’s Transaction Real Estate Advisory Services team headquartered<br />
in Dubai is the leading business advisory practice in the region. Our team consists<br />
of professionals from around the globe with extensive real estate, hospitality<br />
operations and advisory experience. We understand and offer a full scope of<br />
multidisciplinary services for developers, lenders, owners and operators. Our<br />
specialist services include acquisitions, capital sourcing, highest and best use<br />
analysis, due diligence, market and financial feasibility studies, management<br />
company selection/contract reviews, strategic business planning, repositioning<br />
analysis, operational enhancement/diagnostics, valuations/appraisals and<br />
disposition, for every real estate industry segment such as hotel, residential,<br />
commercial, retail, restaurant, golf, marina, theme park and convention center.<br />
<strong>Ernst</strong> & <strong>Young</strong> is the largest professional services firm in <strong>Middle</strong> <strong>East</strong> with 20<br />
offices in 15 countries and part of the global <strong>Ernst</strong> & <strong>Young</strong> network with over<br />
144,000 people in 140 countries.<br />
Sincerely<br />
Yousef Wahbah<br />
Principal<br />
Transaction Real Estate Advisory<br />
Services Group Leader - MENA<br />
Paul Arnold<br />
Principal<br />
Transaction Real Estate Advisory<br />
Services Group Leader - MENA<br />
2
<strong>Ernst</strong> & <strong>Young</strong><br />
<strong>Middle</strong> <strong>East</strong> <strong>Hotel</strong> <strong>Benchmark</strong> <strong>Survey</strong><br />
<strong>Ernst</strong> & <strong>Young</strong><br />
<strong>Middle</strong> <strong>East</strong> <strong>Hotel</strong> <strong>Benchmark</strong> <strong>Survey</strong><br />
% Occupancy Manama <strong>Hotel</strong>s<br />
Occupancy % November 2008 - November 2009<br />
100<br />
90<br />
88<br />
80<br />
70<br />
76 75<br />
68<br />
Occupancy %<br />
60<br />
50<br />
40<br />
55<br />
60<br />
54<br />
48<br />
51<br />
40<br />
44<br />
60<br />
58<br />
30<br />
20<br />
10<br />
0<br />
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov<br />
Months<br />
Average Room Rate Beirut <strong>Hotel</strong>s (US$)<br />
Average Room Rate November 2008 - November 2009<br />
350<br />
322 319<br />
300<br />
273<br />
Average Room Rate<br />
250<br />
200<br />
150<br />
100<br />
183<br />
240<br />
187<br />
198<br />
181<br />
195<br />
184<br />
241<br />
205<br />
227<br />
50<br />
0<br />
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov<br />
Months<br />
Rev PAR in Riyadh <strong>Hotel</strong>s (US$)<br />
Room Yield November 2008 - Novemer 2009<br />
180<br />
160<br />
140<br />
167<br />
143<br />
148<br />
170<br />
149 151<br />
136<br />
158<br />
Room Yield<br />
120<br />
100<br />
80<br />
82<br />
107<br />
74<br />
87<br />
111<br />
60<br />
40<br />
20<br />
0<br />
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov<br />
Months<br />
<strong>Ernst</strong> & <strong>Young</strong> <strong>Middle</strong> <strong>East</strong> <strong>Hotel</strong> <strong>Benchmark</strong> <strong>Survey</strong><br />
3
<strong>Ernst</strong> & <strong>Young</strong><br />
<strong>Middle</strong> <strong>East</strong> <strong>Hotel</strong> <strong>Benchmark</strong> <strong>Survey</strong><br />
% Occupancy Dubai - Overall <strong>Hotel</strong>s<br />
Occupancy % November 2008 - November 2009<br />
100<br />
Occupancy %<br />
90<br />
80<br />
70<br />
60<br />
50<br />
40<br />
87.3<br />
69<br />
73.4<br />
78.8 78.6<br />
75.4<br />
71.7<br />
69.1 69.5<br />
66.7<br />
60.8<br />
76<br />
85.7<br />
30<br />
20<br />
10<br />
0<br />
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov<br />
Months<br />
Average Room Rate Dubai - Overall <strong>Hotel</strong>s (US$)<br />
Average Room Rate November 2008 - November 2009<br />
450<br />
400<br />
350<br />
383<br />
Average Room Rate<br />
300<br />
250<br />
200<br />
150<br />
312<br />
305<br />
281<br />
265 261<br />
204<br />
161 162<br />
152<br />
189<br />
257<br />
289<br />
100<br />
50<br />
0<br />
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov<br />
Months<br />
Rev PAR in Dubai - Overall <strong>Hotel</strong>s (US$)<br />
Room Yield November 2008 - November 2009<br />
400<br />
350<br />
334<br />
300<br />
Room Yield<br />
250<br />
200<br />
216<br />
224 221<br />
208<br />
197<br />
195<br />
247<br />
150<br />
146<br />
100<br />
112 112<br />
102<br />
115<br />
50<br />
0<br />
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov<br />
Months<br />
4 <strong>Ernst</strong> & <strong>Young</strong> <strong>Middle</strong> <strong>East</strong> <strong>Hotel</strong> <strong>Benchmark</strong> <strong>Survey</strong>
<strong>Ernst</strong> & <strong>Young</strong><br />
<strong>Middle</strong> <strong>East</strong> <strong>Hotel</strong> <strong>Benchmark</strong> <strong>Survey</strong><br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<strong>Ernst</strong> & <strong>Young</strong> <strong>Middle</strong> <strong>East</strong> <strong>Hotel</strong> <strong>Benchmark</strong> <strong>Survey</strong><br />
<br />
5
<strong>Ernst</strong> & <strong>Young</strong><br />
<strong>Middle</strong> <strong>East</strong> <strong>Hotel</strong> <strong>Benchmark</strong> <strong>Survey</strong><br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
6 <strong>Ernst</strong> & <strong>Young</strong> <strong>Middle</strong> <strong>East</strong> <strong>Hotel</strong> <strong>Benchmark</strong> <strong>Survey</strong>
<strong>Ernst</strong> & <strong>Young</strong><br />
<strong>Middle</strong> <strong>East</strong> <strong>Hotel</strong> <strong>Benchmark</strong> <strong>Survey</strong><br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<strong>Ernst</strong> & <strong>Young</strong> <strong>Middle</strong> <strong>East</strong> <strong>Hotel</strong> <strong>Benchmark</strong> <strong>Survey</strong><br />
7
<strong>Ernst</strong> & <strong>Young</strong><br />
<br />
<br />
<strong>Middle</strong> <strong>East</strong> <strong>Hotel</strong> <strong>Benchmark</strong> <strong>Survey</strong><br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
8 <strong>Ernst</strong> & <strong>Young</strong> <strong>Middle</strong> <strong>East</strong> <strong>Hotel</strong> <strong>Benchmark</strong> <strong>Survey</strong>
<strong>Ernst</strong> & <strong>Young</strong><br />
Assurance | Tax | Transactions | Advisory<br />
About <strong>Ernst</strong> & <strong>Young</strong><br />
<strong>Ernst</strong> & <strong>Young</strong> is a global leader in assurance, tax,<br />
transaction and advisory services. Worldwide, our<br />
144,000 people are united by our shared values and<br />
an unwavering commitment to quality. We make a<br />
difference by helping our people, our clients and our<br />
wider communities achieve their potential.<br />
For more information, please visit www.ey.com<br />
<strong>Ernst</strong> & <strong>Young</strong> refers to the global organization of<br />
member firms of <strong>Ernst</strong> & <strong>Young</strong> Global Limited, each<br />
of which is a separate legal entity. <strong>Ernst</strong> & <strong>Young</strong><br />
Global Limited, a UK company limited by guarantee,<br />
does not provide services to clients.<br />
The <strong>Middle</strong> <strong>East</strong> practice of <strong>Ernst</strong> & <strong>Young</strong> has<br />
been operating in the region since 1923. For over<br />
85 years, we have evolved to meet the legal and<br />
commercial developments of the region. Across<br />
the <strong>Middle</strong> <strong>East</strong>, we have over 4,200 people united<br />
across 20 offices and 15 Arab countries, sharing<br />
the same values and an unwavering commitment to<br />
quality. We make a difference by helping our people,<br />
our clients and our wider communities achieve their<br />
potential.<br />
For more information, please visit www.ey.com/me<br />
© <strong>Ernst</strong> & <strong>Young</strong> 2010.<br />
All rights reserved.
Change language