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Hotels suffer in the Middle East
Hotels in the Middle East are suffering most from the global economic downturn, according to a survey by HRG.
A study of average rates for the first half of 2010 showed double digit falls in the UAE, Bahrain, Qatar and Oman.
Average room rates in Abu Dhabi fell by 26%, in sharp contrast to the 38% growth in average rate recorded in the first half of 2009
The report said like Dubai, Abu Dubai has faced a substantial fall in occupancy and, combined with ongoing new hotel developments, this is set to continue for some time to come.
HRG also found that:
– many European cities saw average rate growth, such as Stockholm (13%), Zurich (7%) and Geneva (5%)
– five of the top 10 most expensive cities worldwide were in Europe: Geneva, Paris, Zurich, Stockholm and Oslo
– London has seen a 1% increase in average rate in the first six months of 2010, after a 4% decline in 2009, and maintains its position at 23rd in the rankings
– Moscow yet again retains its place as the city with the highest average room rate for the sixth year, despite a fall of 12% when measured in local currency
– Geneva and Hong Kong were the second and third most expensive cities respectively
– rates in the US were flat or marginally back compared to 2009 figures, with the exception of San Francisco where average rates fell by 11%
– the top end of the market continues to hold up well, with an average rate increase of 1% in 5 star hotels.
Commenting on the findings, Margaret Bowler, director of global hotel relations at HRG, said: “Globally, the hotel industry has shown signs of recovery in the first half of 2010 when compared to the same period in 2009.
“A majority of the cities surveyed, although not yet in positive growth, certainly recorded an improvement in performance.
“It is good to see the positive effect of certain sectors travelling more regularly, however it is clear that the rate of recovery is mixed and varies according to region, country and specific markets.
“The challenge now facing hoteliers is to increase rates in line with demand to pre-recession levels, something which many forecasters believe will not happen until 2012 at the earliest.
“Expectation is high for further recovery in rates and the big hotel groups are understandably working to return their rates to pre-recession levels.â€
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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