Occupancy rate at Beirut hotels at 13%, room yields down 88% in first half of 2020

Economic Research | Lebanon This Week | Lebanon This Week 645 | Occupancy rate at Beirut hotels at 13%, room yields down 88% in first half of 2020 | Lebanon | Byblos Bank

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Lebanon This Week 645

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Occupancy rate at Beirut hotels at 13%, room yields down 88% in first half of 2020

EY's benchmark survey of the hotel sector in the Middle East indicates that the average occupancy rate at four- and five-star hotels in Beirut was 13% in the first half of 2020 relative to 70% in the same period of 2019, and compared to an average rate of 40.5% in 14 Arab markets included in the survey. The occupancy rate at Beirut hotels was the lowest in the region in the covered period, while it was the sixth highest in the first half of 2019. The occupancy rate at hotels in Beirut regressed by 57 percentage points in the first half of 2020, constituting the steepest decline in the region. In comparison, the average occupancy rate in Arab markets declined by 25.6 percentage points in the covered period.
 
The occupancy rate at Beirut hotels stood at 3% in June 2020, constituting a decrease of 74.2 percentage points from 77% in June 2019. It was the lowest rate in the region in the covered month. The occupancy rate at Beirut hotels reached 25% in January, 30% in February, 10% in March, 2% in April and 3% in May 2020. In comparison, it stood at 60% in January, at 71% in February, at 79% in March, at 85% in April and at 45% in May 2019.

The average rate per room at Beirut hotels was $130 in the first half of 2020, decreasing by 34.5% from $199 in the same period of 2019 and constituting the seventh highest rate in the region. The average rate per room in Beirut was lower than the regional average of $134.1 that regressed by 20.1% from the first six months of 2019. The average rate per room at Beirut hotels was $170 in June 2020, relative to $138 in January, $123 in February, $122 in March, $124 in April and $108 in May 2020, and down by 27.4% from $235 in June 2019. 
 
Further, revenues per available room (RevPAR) were $16 at Beirut hotels in the first half of 2020, the lowest rate in the region, compared to $138 in the same period of 2019. Beirut's RevPAR regressed by 88.2% year-on-year and posted the steepest decrease regionally in the covered period. Beirut posted RevPAR of $5 in June 2020, down by 97.2% from $181 in June 2019. The RevPAR in Beirut, along with Makkah, were the lowest in the region in the covered month. In comparison, Beirut posted RevPARs of $35 in January, of $37 in February, of $12 in March, of $2 in April and of $3 in May 2020; while it registered RevPARs of $118 in January, of $132 in February, of $146 in March, of $174 in April and of $83 in May 2019. Abu Dhabi posted the highest occupancy rate in the region at 68% in the first six months of 2020, while Dubai registered the highest average rate per room at $216 and the highest RevPAR at $95 in the covered period.
 
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