Hotelier Middle East – August 2019

HOTELIER MIDDLE EAST | August 2019 | Volume 18 Issue 08

MARKET UPDATE

20

BAHRAIN’S RESURGENCE

IN THE HOTEL MARKET

Bahrain’s hospitality sector has experienced a

‘phenomenal’ 2019 according to industry experts

as the growing number of tourism initiatives are

driving demand to the region. Hotelier Middle

East explores the opportunities and challenges

of the Bahrain market

W

hile many Middle Eastern markets record-

ed a decline in revenue per available room

(RevPAR) during the first half of 2019, Bah-

rain was one of the standout countries that

“broke records” for average hotel rates.

According to data from STR, hotel properties in Bahrain’s

capital city Manama recorded their “first Q1 increase in Rev-

PAR since 2014.” Manama recorded a 12.5% hike in occupan-

cy levels taking the total to 58.4%, while average room rates

(ADR) rose by 1.6% and RevPAR increased by 14.3%.

According to analysts, March was “the best month of the

quarter” with a 17.4% rise in occupancy and a 5.5% lift in ADR,

MARKET UPDATE

which resulted in a 23.8% jump in RevPAR. So what at-

tributed to the sudden jump in performance?

Colliers International’s head of hotels for the MENA re-

gion Christopher Lund told Hotelier Middle East that the

demand in March was largely attributed to the Formula 1

Grand Prix, as well as tourism infrastructure investments.

“Bahrain has seen a phenomenal start to 2019,” said

Lund. “Continuous investments in tourism infrastruc-

ture is expected to increase Bahrain’s visibility on the

global map as well as have a positive impact on the over-

all hospitality market.”

Strong tourism statistics during the first quarter of

2019 also prompted the Bahrain Tourism and Exhibitions

Authority (BTEA) to announce that 22 hotels would be

opening in the country during the next four years.

Announced by BTEA’s CEO Shaikh Khaled bin Hu-

mood Al Khalifa, the move is part of the organisation’s

commitment to “distinguish” Bahrain from other coun-

tries in the region.

Citing BTEA’s preliminary data for Q1 2019, Shaikh

Khalid said the performance of the tourism sector con-

tinued to improve, with inbound tourists increasing to 3.2

million, a 3.1% rise compared to the same period last year.

International arrivals reached 3.5 million, a 3.1% in-

crease from last year. Other data showed that five-star

hotel occupancy rates jumped 53% compared to 50%

during the same period last year. Four-star hotels occu-

pancy reached 46% compared to 42%.

But it’s not always been rosy for Bahrain, as revealed

by Swiss-Belhotel International’s SVP operations and

development for the Middle East, Africa and India, Lau-

rent Voivenel, who said Bahrain was the worst hit among

the Gulf countries for RevPAR during 2017-2018.

“Considering the period of the last 12 months with

three quarters in 2018 and Q1 of 2019, the Manama and

By Ashley Williams

Bahrain’s skyline