Ernst & Young (EY) published its “Middle East Hotel Benchmark Survey Report” on the performance of 4 and 5 star hotels in the Middle East region, conveying a 4.5 percentage-point annual drop in the average occupancy rate in Beirut’s hospitality sector to 29% during the month of January 2021. The average room rate increased by 142.1% y-o-y to $213 in January, with the average room yield concurrently rising by 110.1% to $63.

The following chart captures the monthly evolution in the occupancy rate in Beirut’s 4 and 5 star hotels over the January 2020 – January 2021 period:

On a regional basis, Beirut recorded the sixth highest average occupancy rate among the nine covered Middle Eastern capitals during the month of January 2021, with Doha outperforming its regional peers, enjoying the highest average occupancy rate of 70%, followed by Abu Dhabi (61%) and Riyadh (54%). Beirut’s 4 and 5 star hotels charged the highest average room rate of $213 as Lebanese hotels were forced to adjust the LBP counter value of their room rates for the double digit inflation figures amid the significant devaluation of the local currency. Always on the room rate front, Beirut was followed by Kuwait City ($190) and Riyadh ($149).