Waning performance of hospitality sector in Beirut during 2016

A report on the regional hospitality market in the first half of 2016 has shown a decline in the performance of the sector in Beirut. The survey conducted by the multinational professional services firm, Ernst & Young, indicated that the rate of occupancy in the four and five star hotels in Beirut has fallen to 54% during the first half of the current year, compared the to 57% for the same period of last year. Interestingly enough, Beirut came 10th among a list of 14 cities in terms of the highest rate of occupancy, (ahead of Mecca, Manama and Amman but behind Riyadh and Cairo). The report also revealed a drop in the average rates of rooms in the Lebanese capital during the first half of 2016 (from USD164 in 2015 to USD 135 this year), representing the highest decline among the 14 mentioned cities. To recall, the average rate of rooms in Beirut (ranked 12th) recorded the highest score in the region after Ras al Khaima and Amman, but beating each of Cairo and Abu Dhabi. Furthermore, the survey indicated that proceeds from room occupancy have dropped by an annual rate of 21.7% during the first half of 2016 (USD 74 against USD 94 in 2015). (Al Akhbar, August 9, 2016)