Riyadh – Mubasher: Hotels in Jeddah reported their lower occupancy rate “ever” in December, according to research firm STR.
The firm’s preliminary daily data for the final month of 2017 showed that the Saudi city saw a decline in occupancies by 8.4% to 45.1%, indicating that this rate was the lowest since records began.
A reason for the slump was the increase in supply that was not met by equal demand.
Hotel supply grew by 7% in December, whereas demand only increased by 2%, the report showed.
Jeddah’s average daily rate (ADR) also fell 4.1% to SAR 694.85, STR added, noting that revenue per available room (RevPAR) had dropped 12.1% to SAR 313.45.
The continued increase in supply versus low demand for hotel rooms has continued to lower occupancy levels and to pressure rates, STR concluded.
