According to data, occupancy rates dropped by 2.4% to 70.6% when compared to the same period last year, while ADR dropped by 4.9% to SAR1,310.35 ($349.38). Meanwhile, RevPAR dropped by 7.1% to SAR925.07 ($246.65).A rise in supply was one of the reasons behind the low performance. Despite demand increasing by 3%, supply outweighed it with an increase of 5.5%.
Analysts from STR added that this “low performance [is] consistent with the time of Ramadan.” They said, “In addition to supply growth, STR analysts note that performance declines were mainly due to the shift in Ramadan dates. Last year, [a major part of] Ramadan occurred during June as opposed to May this year. “The first week of the month saw double-digit decreases in both occupancy and RevPAR, with the steepest occupancy decline of the month (27.8%) occurring on 9 May, 2019,” the group added.
In March earlier this year, Jeddah hotel rates fell to 11-year low.