Dubai: Both Riyadh and Kuwait’s hotels are expected to receive a boost in revenue per available room (RevPAR), a key industry metric, between March and May of this year, according to a new study by Colliers International.
The property consultancy, in its most recent Middle East and North Africa forecast, identified the pair as being the beneficiaries of a 20 per cent (for Saudi Arabia) and 8 per cent (for Kuwait) jump in RevPar over the next three months.
In Riyadh, Colliers said that strong corporate and meetings, incentives, conferencing, and exhibition (MICE) activities due to higher public spending is resulting in a growth in both occupancy and average daily rate (ADR).
They add that the same trend is anticipated until the beginning of summer.
Kuwait, meanwhile, is likely to see a windfall, albeit smaller, from strong MICE activity driving up occupancy, complimented by no major increase in supply. Together, they are expected to push positive growth in RevPAR.
On the downside, the emirate of Fujairah is expected to see a drop in demand over the next three months, part of a continuing drop in leisure demand from traditional source markets.
This is leading to a drop in ADR, and adversely impacting the area’s RevPAR.
