In March, hotels in the Middle East reported that occupancy rose 0.9 percent to 70.6 percent, but Average Daily Rate (ADR) dropped 4.5 percent and RevPAR decreased 3.7 percent.
Hotels in Africa saw occupancy increase 5.2 percent to 58.9 percent, ADR increase 6.6 percent and RevPAR increase 12.1 percent.
Performance recovery continued in Egypt, and the absolute occupancy level was the highest for a Q1 in the country since 2010. The year-over-year RevPAR increase was supported by both Sharm El Sheikh (up 84.9 percent) and Cairo/Giza (up 14.7 percent) markets.
STR analysts noted that the slow start to the year for South Africa was in part due to supply growth of 2.2 percent. At the market-level, Cape Town reported an 8.9 percent Q1 decrease in occupancy.
Healthy demand growth of 5.2 percent was enough to outpace continued significant supply growth by four percent in the emirates, leading to an increase in occupancy while mitigating the supply impact on rate levels.