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 45.1 percentage-point annual increase in the average occupancy rate in Beirut’s hospitality sector to 50% during the month of May 2021. Said increase, according to EY, may be attributed to the depreciation of the Lebanese Lira against the US Dollar which might have opened Beirut to additional “price-sensitive vacationers”. The average room rate increased sizably y-o-y to $324 in May, with the average room yield concurrently rising by more than forty folds to $162. Furthermore, EY noted that the resumption of economic & entertainment activities in addition to the drop in the number of COVID-19 cases may have contributed to the higher turnouts in the hospitality sector when compared to the figures of May 2020.

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

On a regional basis, Beirut recorded the third lowest average occupancy rate (33%) among the nine covered Middle Eastern capitals during the first five months 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 76%, followed by Abu Dhabi (70%) and Riyadh (45%). Beirut’s 4 and 5 star hotels charged the highest average room rate of $264 as Lebanese hotels adjusted their LBP room rates to account 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 ($192) and Riyadh ($137).