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 19.7 percentage-point annual increase in the average occupancy rate in Beirut’s hospitality sector to 34% during the month of March 2021. The average room rate almost tripled y-o-y to $224 in March, with the average room yield concurrently rising by six folds to $75.

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

On a regional basis, Beirut recorded the second lowest average occupancy rate (27%) among the nine covered Middle Eastern capitals during the first quarter of 2021 in part owing to the lockdown between the first and second month of the year. Doha outperformed its regional peers, enjoying the highest average occupancy rate of 77%, followed by Abu Dhabi (70%) and Riyadh (48%). Beirut’s 4 and 5 star hotels charged the highest average room rate of $220 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 ($185) and Riyadh ($140).