Riyadh Riyadh

Hotels in Riyadh Continue to Struggle

Following on the 24 percent plummet in profit per room in 2016, hotels in Riyadh also suffered a 16.2 percent year-on-year drop in profit during January.

Furthermore, RevPAR declined 13.9 percent during the month under review, which was exacerbated by falling revenue in food and beverage along with conference and banqueting, down 15 percent and 20.1 percent, respectively, compared to January 2015.

Addresses in the city attempted to overcome the challenging period through a 10.2 percent saving in payroll, and reducing overheads 10.5 percent.

In the 12 months to January, RevPAR stood at USD126.12, while profit per room during this period fell 24.4 percent.