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 3.1 percentage-point annual decrease in the average occupancy rate in Beirut’s hospitality sector to 57.4% during the month of June 2023. Conversely, the average room rate more than doubled to read $185.0 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 134.2% y-o-y to $106.0.

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

On a regional basis, Beirut recorded the lowest average occupancy rate (41.8%) among the nine covered Middle Eastern capitals during the first half of 2023. Abu Dhabi, on the other hand, outperformed its regional peers, enjoying the highest average occupancy rate of 78.4%, followed by Cairo City (69.9%) and Riyadh (63.2%). Beirut’s 4 and 5 star hotels charged the second lowest average room rate of $107 only preceded by Abu Dhabi ($101). Riyadh, on the other hand, recorded the highest average room rate of $192, followed by Kuwait City ($179) and Manama ($159), only to name a few.