According to analysts STR, Hotel residency rates in Jeddah are set to carry on to slump in March as the city views a significant growth in supply.
STR’s preliminary March 2018 data for hotels in the Saudi city showed mostly negative performance due to the contaminants in supply.
Based on daily data from March, Jeddah announced a 12.9 percent jump in supply in comparison to the year-in previous period while demand rose only scarcely by 0.9 percent.
Occupancy dropped by 12.3 percent to 48.8 percent while average daily rate (ADR) decreased by 5.6 percent to SR674.54 and income every available room (RevPAR) dropped by 17.2 percent to SR329.17.
STR analysts noted that occupation levels have been decreasing significantly in Jeddah over the last two years due to supply extension.
They added, with room rates decreasing as well, RevPAR has now dropped in the first quarter of each of the last three years.
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