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Sharm El Sheikh Sharm El Sheikh

Profit Loss Despite Revenue Uplift in Sharm El Sheikh

Although hotels in Sharm El Sheikh achieved a 57 percent year-on-year boost in total revenue in February, profit per room remained in negative territory, with a loss of USD1.33.

Nevertheless, recovery is underway with a 112 percent surge in RevPAR in the first two months of the year, as well as an 8.7 percentage point boost in occupancy compared to the same period in 2016.

Furthermore, hoteliers reported a 61.5 percent increase in achieved average room rate, to USD34.84.

Despite these successes, profit per room was offset by high costs, including payroll as well as overheads, accounting for 39.7 percent and 56.2 percent of total revenue, in that order.