While occupancy in Sharm El Sheikh hotels went up 4.8 percent in June, things didn't look so good in the United Arab Emirates.
In Abu Dhabi, hotel occupancy dropped 10.5 percent and Dubai saw 9 percent decrease. This trend was seen across the region with occupancy dropping by 6.1 percent in Riyadh and a drastic 11.9 percent in Beirut.
However, even though Sharm El Sheikh saw higher occupancy, overall gross operating profit per available room went down by 17.6 percent. This fall was credited to higher payroll costs.
Again, the decline in overall gross operating profit per available room was spread throughout the Middle East with Riyadh experiencing a 7.3 percent fall, Dubai plummeting by 36.4 percent, and Beirut drastically dropping by 57.8 percent.
Abu Dhabi suffered by far the worst decline in gross operating profit per available room with a massive fall of 96.5 percent.
Similar to Sharm El Sheikh, across the region, higher payroll costs were blamed as part of the problem leading to lower profits.
Statistics and information provided in this article come from HotStats database. They reflect the portfolios and distribution of the hotel chains surveyed by HotStats, operating primarily in the four and five-star sectors.