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 3.3 percentage-point annual decrease in the average occupancy rate in Beirut’s hospitality sector to 49.2% during the month of May 2023. Conversely, the average room rate more than doubled to read $162.0 in the light of the start of the summer season. As a result, the revenue per available room (RevPAR), which is the product of the occupancy and average room rate, rose by 90.9% y-o-y to $80.0.

The following chart captures the monthly evolution in the occupancy rate in Beirut’s 4 and 5 star hotels over the May 2022 – May 2023 period:

On a regional basis, Beirut recorded the lowest average occupancy rate (38.7%) among the nine covered Middle Eastern capitals during the first five months of 2023. Abu Dhabi , on the other hand, outperformed its regional peers, enjoying the highest average occupancy rate of 80.5%, followed by Cairo City (70.8%) and Riyadh (64.8%). Beirut’s 4 and 5 star hotels also charged the lowest average room rate of $82. Riyadh, on the other hand, recorded the highest average room rate of $193, followed by Kuwait City ($182) and Manama ($159), only to name a few.