Beirut hotels’ occupancy rate stood at 45.5 percent in the first half of the year

The average occupancy rate for four- and five-star hotels in Beirut in the first half of 2022 hit 45.5 percent, up from 36.7 percent during the same period in 2021, and compared to an average rate of 57.5 percent in the hotel markets in 13 Arab cities included in a study conducted by Ernst & Young and relayed by Lebanon This Week, Byblos Bank's weekly newsletter.

Beirut came in 10th in the ranking, the fourth lowest score. The data showed an increase of 8.8 percentage points in the first six months of this year compared with the first half of 2021.

However, this increase in occupancy rate in four- and five-star hotels is still below the regional average, which increased by 14.8 percentage points during the same period.

The monthly details show that Beirut’s luxury hotels recorded their highest occupancy rate in June, estimated by E&Y at 60.4 percent, compared with 54 percent in June 2021. On the other hand, the lowest occupancy rate was seen in April with 25.8 percent, compared with 34.6 percent in April 2021.

The average room rate in the first half of 2022 was $66, up from $59 — a 12.3 percent year-on-year increase — and is the lowest in the region.

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The authors of the report based their figures on the same lira\dollar exchange rate used by hotels when making reservations. Officially set at LL1,507.5 to the dollar, the lira exchange rate has fluctuated on the parallel market since the crisis began, ranging from LL20,000 to LL30,000 to the dollar or more in the first six months of this year.

The regional average room rate for the same period was $162.9, a 24.5 percent increase compared with $130.8 in the first half of 2021.

The highest average room rate in Beirut hotels was in May, with $79 per night, compared with $103 in May 2021. The lowest rate was in March, with $64.6, compared with $72.5 in March 2021.

Finally, the average revenue per room, calculated based on the exchange rate adopted in the hotels, reached $30 in the first six months of the year, compared with $22 in the first half of 2021, also the lowest in the region.

This average points to a 39.4 percent year-over-year increase, or the ninth highest increase in the region.

The highest revenues were recorded in June, with $45 (compared with $32 in June 2021), while the lowest was in April with $18.70, compared with $31.20 in April 2021.

Regionally, Abu Dhabi had the highest occupancy rate for four- and five-stars hotels in the first half of 2022, with 76.3 percent, while Dubai generated the highest average rate per room ($350) and highest average revenue per room ($261) during the same period. 

This article was originally published in French in L'Orient-Le Jour.

Le taux d’occupation des hôtels beyrouthins à 45,5 % au 1er semestre