Jeddah's hotel demand outpaced supply in March, according to preliminary monthly data from STR.
STR’s preliminary March 2019 data for Jeddah, Saudi Arabia, indicates a drop in room rates during low occupancy season.
Based on daily data from March, Jeddah reported the following in year-over-year comparisons:
• Supply: +7.7%
• Demand: +10.7%
• Occupancy: +2.8% to 48.8%
• Average daily rate (ADR): -17.1% to SAR563.89
• Revenue per available room (RevPAR): -14.8% to SAR275.21
The absolute ADR value was the lowest for any month in Jeddah since April 2008. As a result, RevPAR fell to its lowest March level since 2007. STR analysts note that while demand outpaced continued significant supply growth in Jeddah, a very competitive marketplace during low season led to hoteliers sacrificing room rate to maintain market share.
STR will release full March results later this month.
STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 10 countries around the world with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.