Jeddah hotels turn in strong performance for September

Jeddah hotels performed strongly in September with room occupancy and room rates rising over the previous year, global hotel industry tracker STR said on Thursday.
For the month, hotel occupancy rates rose by 3.5 percent to 70.2 percent while average daily room rates (ADR) improved 12.3 percent to SR1,218.79 and revenue per available room (RevPAR) went up 16.2 percent to SR855.49, a preliminary report from STR said.
ADR is calculated by dividing the room revenue earned by the number of rooms sold while RevPAR is derived multiplying a hotel’s ADR by its occupancy rate.
“These performance increases are in comparison with a very weak September 2016. Jeddah recorded particularly strong performance levels during the IDC CIO summit, with RevPAR growth above 100 percent for September 27-28,” STR said.
STR will release full September results later this month.
An earlier report from property consultancy JLL noted that Jeddah remained one of the best performing markets in the region.
“The outlook for the hotel market in Jeddah remains positive due to the city’s prime location between the Holy cities of Makkah and Madinah, which should see increased demand for hotels,” JLL said.

Source:Arabnews