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Saudi Arabia saw the greatest gains in the region – Image Credit Unsplash
- The Middle East and Africa (MEA) region hotels experienced mixed performance in March 2025, largely due to the month-long observance of Ramadan.
- Saudi Arabia saw the greatest gains in the region, while most other countries posted RevPAR declines; Egypt and South Africa recorded improved performance, lifting Africa’s overall performance.
March 2025 saw varied performance across Middle East and Africa region hotels, significantly influenced by the observance of Ramadan. The Holy Month, which fell almost entirely in March this year, is typically the slowest period for hotels in the Middle East and nearby markets frequented by Muslim visitors. However, the shift of Ramadan into the region’s high season allowed markets with larger international or leisure demand to maintain occupancy.
Despite this, based on room supply, eight of the twelve largest countries in the region reported declines in Revenue Per Available Room (RevPAR), with occupancy playing a larger role than rate in driving the decrease. Saudi Arabia emerged as an exception, recording the highest gains across the region, notably bolstered by the strong performance in the pilgrim cities of Makkah and Medina during Ramadan.
Performance of Other Major Middle East Countries
Oman’s RevPAR slightly improved, lifted by gains in Muscat. However, most major Middle East countries such as the United Arab Emirates, Qatar, Kuwait, Jordan, and Bahrain recorded common RevPAR declines due to the slowdown during Ramadan. The shift of the annual Dubai World Cup horse race from March to April also contributed to Dubai’s double-digit RevPAR decline.
Egypt and South Africa: An Upswing in Performance
Egypt recorded the second-highest increase across MEA countries, largely due to significant RevPAR lift in its two largest markets, Sharm El Sheikh and the Hurghada area.
South Africa, with its RevPAR advancing 9.1%, scored the third strongest performance, driven by the Gauteng market, which includes Johannesburg and Pretoria. Both Egypt and South Africa played substantial roles in enhancing Africa’s performance. Excluding these two countries, the region recorded a 6.0% decrease in RevPAR.
Performance in Other African Countries Morocco and Tunisia, two of the largest markets in the region in terms of hotel supply, reflected the pattern of RevPAR slowdowns in March, following strong gains in the first two months of the year. Kenya also reported an 18.0% decline in RevPAR, impacted by weak performance in Nairobi.
Despite the growing lodging supply and improving infrastructure aiding hotel demand throughout Africa, political unrest and travel warnings continue to pose challenges across the continent.
Discover more at STR.
