Flotation of Egyptian pound weighs on hotels revenues

CAIRO- 12 July 2017: Cairo hotels recorded a 17 percent decline Year on Year (YoY) in their Revenue Per Available Room (RevPAR) in a three month forecast (June-August 2017), global real estate services company, Colliers International said in a report this week.

The MENA Hotel Market Forecast report said that although Cairo market is on track to achieving occupancy and Average Daily Rate (ADR) levels emulating those of pre-2011, the drop in RevPAR is attributed to the flotation of the Egyptian pound against the US dollar.

In the three months from June to August 2017, Cairo witnessed a 74 percent occupancy rate and 17 percent decline in RevPAR, according to the report.

The Red Sea resort of Sharm El-Sheikh saw a 36 percent decline in RevPAR and 41 percent occupancy rate, while Hurghada witnessed a 38 percent decline in RevPAR and 42 percent occupancy rate, the report said.

The coastal city of Alexandria recorded a 39 percent decline in RevPAR and 75 percent occupancy rate, increasing by 3 percent from last year.