Saudi coastal city of Jeddah witnessed a major drop in room rates in March with the average daily rate (ADR) at its 11-year low, and RevPAR (Revenue per available room) witnessing a major decline in 12 years, said a report.
According to STR's preliminary data for March, the absolute ADR fell 17.1 per cent to SR563.89 ($150.3), the biggest drop for any month in Jeddah since April 2008 while the RevPAR fell 14.8 per cent to SR275.21 ($73.3), its lowest since 2007.
While demand grew by 10.7 per cent outpacing continued significant supply growth of 7.7 per cent in Jeddah, a very competitive marketplace during low season led to hoteliers sacrificing room rates to maintain market share.
The occupancy rates surged by over 2.8 per cent to 48.8 per cent, stated the report by STR, a major provider of premium data benchmarking, analytics and marketplace insights for global hospitality sectors.
Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Tennessee (US), an international headquarters in London (UK), and an Asia Pacific headquarters in Singapore.-TradeArabia News Service
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