Benchmark

Middle East Hotel Benchmark Survey Report December 2012

The hotel benchmark report provides a monthly performance overview of leading hotels in the Middle East. The hotel set includes international branded and operated properties across the 5 star and 4 star segment.

Introduction
Ernst & Young Middle East Hotel Benchmark Survey We hope you enjoy the December 2012 report of the Ernst & Young Middle East Hotel Benchmark Survey. Inside we cover occupancy and rate performance in key hotel markets across selected countries and cities in the Middle East on a monthly and yeartodate basis in local currencies and US dollars. This monthly Middle East Hotel Benchmark Survey is part of our services to the hospitality sector. Ernst & Youngs Transaction Real Estate Advisory Services team headquartered in Dubai is the leading business advisory practice in the region. Our team consists of professionals from around the globe with extensive real estate, hospitality operations and advisory experience. We understand and offer a full scope of multidisciplinary services for developers, lenders, owners and operators. Our specialist services include acquisitions, capital sourcing, highest and best use analysis, due diligence, market and financial feasibility studies, management company selection/contract reviews, strategic business planning, repositioning analysis, operational enhancement/diagnostics, valuations/appraisals and disposition, for every real estate industry segment such as hotel, residential, commercial, retail, restaurant, golf, marina, theme park and convention center. Ernst & Young is the largest professional services firm in Middle East with 18 offices in 13 countries and part of the global Ernst & Young network with over 167,000 people in 140 countries.

Sincerely

Yousef Wahbah Partner and Head of MENA Transaction Real Estate

Page 3: We have highlighted the largest variance on a per month basis for the various markets over the last twelve month period in regards to occupancy, average room rate, and room yield Page 4: Dubai overall occupancy, average room rate and room yield over the past twelve months

Page 5: Monthly performance of various markets compared to the previous years monthly period in local currency. Page 6: Monthly performance of various markets compared to the previous years monthly period in US Dollar currency.

Page 7: YeartoDate performance of various markets compared to previous year period in local currency. Page 8: YeartoDate performance of various markets compared to previous year period in US Dollar currency.

Markets with the largest variance on a per month basis

% Occupancy Beirut Hotels
80 70 60 Occupancy % 50 40 30 20 10 0

Occupancy % December 2011December 2012

74 64 64 66 67 58 53 46 34 39 39 52

60

Dec

Jan

Feb

Mar

Apr

May

Jun Months

Jul

Aug

Sep

Oct

Nov

Dec

Average Room Rate Doha Hotels (US$)

400 350 300 250 200 150 100 50 0

Average Room Rate December 2011December 2012

354 301

Average Room Rate

258

263

271

283

289 266 230 227 222 236 263

Dec

Jan

Feb

Mar

Apr

May

Jun Months

Jul

Aug

Sep

Oct

Nov

Dec

Rev PAR in Beirut Overall Hotels (US$)

160 140 120 100
Room Yield

149 139 131

Room Yield December 2011December 2012

149 138 134 119 103 79 62 68 62 88

80 60 40 20 0

Dec

Jan

Feb

Mar

Apr

May

Jun
Months

Jul

Aug

Sep

Oct

Nov

Dec

Dubai overall monthly performance

% Occupancy Dubai Overall Hotels
100 90 80 70

Occupancy % December 2011December 2012

83 88 88 89 86 79 78 69 62 73 87 91 84

Occupancy %

60 50 40 30 20 10 0 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Months

Average Room Rate Dubai Overall Hotels (US$)

350 300 254
Average Room Rate

Average Room Rate December 2011December 2012

280 290 302 309 285

274

268

250 200 150 100 50 0 204 174 167 188 204

Dec

Jan

Feb

Mar

Apr

May

Jun Months

Jul

Aug

Sep

Oct

Nov

Dec

Rev PAR in Dubai Overall Hotels (US$)

300

Room Yield December 2011December 2012

241 211 235 250 249 261

281 238

250

Room Yield

200

161
150

135 116 117

117

100

50

Dec

Jan

Feb

Mar

Apr

May

Jun Months

Jul

Aug

Sep

Oct

Nov

Dec

Various markets monthly performance (Local Currency)

Ernst & Young Middle East Hotel Benchmark Survey Monthly Performance: 12/2012 
Occupancy
Currency Bahrain Manama Egypt CairoCity CairoOverall Hurghada Sharm El Shaikh Jordan Amman Kuwait Kuwait Lebanon Beirut Oman Muscat Qatar Doha Saudi Arabia Jeddah Madina Makkah Riyadh United Arab Emirates Abu Dhabi Al Ain DubaiBeach DubaiCity DubaiOverall AED AED AED AED AED 80.0 68.0 83.0 83.0 83.6 78.0 60.0 81.0 84.0 83.3 2.0 8.0 2.0 -1.0 0.3 725 536 1,433 820 1,048 776 675 1,364 772 985 -6.6% -20.5% 5.1% 6.3% 6.4% 583 370 1,194 685 876 608 408 1,109 649 820 -4.1% -9.2% 7.7% 5.6% 6.8% SAR SAR SAR SAR 69.0 65.0 70.0 58.0 69.0 55.0 57.0 51.0 0.0 10.0 13.0 7.0 932 672 934 849 823 536 782 898 13.3% 25.4% 19.5% -5.4% 649 442 660 497 570 297 453 466 13.9% 48.7% 45.5% 6.7% QAR 63.0 66.0 -3.0 1,095 1,358 -19.4% 691 902 -23.4% OMR 76.0 80.0 -4.0 86 89 -3.1% 66 72 -8.2% LBP 52.0 64.0 -12.0 252,825 348,364 -27.4% 133,605 226,281 -41.0% KWD 53.0 54.0 -1.0 73 85 -13.4% 39 46 -15.4% JOD 52.0 55.0 -3.0 106 102 4.6% 56 57 -1.1% EGP EGP EGP EGP 30.0 31.7 62.0 69.0 21.0 23.0 54.0 64.0 9.0 8.7 8.0 5.0 512 508 185 287 544 528 184 292 -5.9% -3.7% 0.8% -1.7% 157 161 115 199 116 121 101 188 34.9% 32.6% 14.0% 5.5% BHD 39.0 28.0 11.0 77 81 -4.5% 30 23 31.2% 2012 % 2011 % Change in % Points

Currency: Local
Average Room Rate
2012 2011 Change 2012

Rooms Yield
2011 Change

Notes
Figures may not add up due to rounding. Cairo - Overall includes: Cairo City and Cairo Pyramid Hotels. Dubai-Overall Includes: Dubai Beach, Dubai City and Dubai Apartment Hotels The Middle East Hotel Benchmark Survey was developed and is maintained by Ernst & Youngs Dubai office under the direction of Yousef Wahbah who leads the Transaction Real Estate Advisory Services Group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney, or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, Ernst & Young has not performed an audit or review of the information gathered and does not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of Ernst & Young and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of Ernst & Young. All requests to reproduce this information must be addressed to yousef.wahbah@ae.ey.com. For information regarding the Hotel Benchmark, contact the Dubai office of Ernst & Young at +971 4 332 4000.

Various markets monthly performance (US Dollar)

Ernst & Young Middle East Hotel Benchmark Survey Monthly Performance: 12/2012
Occupancy
Currency Bahrain Manama Egypt CairoCity CairoOverall Hurghada Sharm El Shaikh Jordan Amman Kuwait Kuwait Lebanon Beirut Oman Muscat Qatar Doha Saudi Arabia Jeddah Madina Makkah Riyadh United Arab Emirates Abu Dhabi Al Ain DubaiBeach DubaiCity DubaiOverall US$ US$ US$ US$ US$ 80.0 68.0 83.0 83.0 83.6 78.0 60.0 81.0 84.0 83.3 2.0 8.0 2.0 -1.0 0.3 198 146 390 223 285 211 184 371 210 268 -6.6% -20.5% 5.1% 6.3% 6.4% 159 101 325 187 238 165 111 302 177 223 -4.1% -9.2% 7.7% 5.6% 6.8% US$ US$ US$ US$ 69.0 65.0 70.0 58.0 69.0 55.0 57.0 51.0 0.0 10.0 13.0 7.0 248 179 249 226 219 143 208 239 13.3% 25.4% 19.5% -5.4% 173 118 176 133 152 79 121 124 13.9% 48.7% 45.5% 6.7% US$ 63.0 66.0 -3.0 301 373 -19.4% 190 248 -23.4% US$ 76.0 80.0 -4.0 224 231 -3.1% 171 187 -8.2% US$ 52.0 64.0 -12.0 167 230 -27.4% 88 149 -41.0% US$ 53.0 54.0 -1.0 251 290 -13.4% 133 157 -15.4% US$ 52.0 55.0 -3.0 151 144 4.6% 80 81 -1.1% US$ US$ US$ US$ 30.0 31.7 62.0 69.0 21.0 23.0 54.0 64.0 9.0 8.7 8.0 5.0 89 88 32 50 94 91 32 51 -5.9% -3.7% 0.8% -1.7% 27 28 20 34 20 21 17 33 34.9% 32.6% 14.0% 5.5% US$ 39.0 28.0 11.0 205 214 -4.5% 80 61 31.2% 2012 % 2011 % Change in % Points

Currency: US$
Average Room Rate
2012 2011 Change 2012

Rooms Yield
2011 Change

Notes
Figures may not add up due to rounding. Cairo Overall includes: Cairo City and Cairo Pyramid Hotels. Dubai Overall Includes: Dubai Beach, Dubai City and Dubai Apartment Hotels The Middle East Hotel Benchmark Survey was developed and is maintained by Ernst & Youngs Dubai office under the direction of Yousef Wahbah who leads the Transaction Real Estate Advisory Services Group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney, or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, Ernst & Young has not performed an audit or review of the information gathered and does not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of Ernst & Young and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of Ernst & Young. All requests to reproduce this information must be addressed to yousef.wahbah@ae.ey.com. For information regarding the Hotel Benchmark, contact the Dubai office of Ernst & Young at +971 4 332 4000.

Various markets YeartoDate performance (Local Currency)

Ernst & Young Middle East Hotel Benchmark Survey YeartoDate Performance: 1/2012 12/2012
Occupancy
Currency Bahrain Manama Egypt CairoCity CairoPyramids CairoOverall Hurghada Sharm El Shaikh Jordan Amman Kuwait Kuwait Lebanon Beirut Oman Muscat Qatar Doha Saudi Arabia Jeddah Madina Makkah Riyadh United Arab Emirates Abu Dhabi Al Ain DubaiApartments DubaiBeach DubaiCity DubaiOverall AED AED AED AED AED AED 76.0 64.0 86.0 79.0 81.0 81.0 75.0 61.0 83.0 80.0 77.0 78.0 1.0 3.0 3.0 -1.0 4.0 3.0 701 521 446 1,300 719 916 785 573 417 1,193 685 854 -10.7% -9.0% 6.8% 8.9% 5.0% 7.3% 535 337 386 1,031 588 743 595 350 347 955 533 674 -10.0% -3.7% 11.1% 7.9% 10.4% 10.4% SAR SAR SAR SAR 80.0 68.0 75.0 58.0 73.0 65.0 73.0 56.0 7.0 3.0 2.0 2.0 909 836 1,165 836 831 747 1,155 867 9.4% 11.9% 0.9% -3.6% 728 574 880 490 615 493 843 493 18.5% 16.5% 4.3% -0.6% QAR 61.0 64.0 -3.0 952 997 -4.5% 589 641 -8.1% OMR 67.0 66.0 1.0 79 82 -3.9% 53 55 -3.1% LBP 54.0 58.0 -4.0 292,622 337,501 -13.3% 160,477 198,253 -19.1% KWD 52.0 53.0 -1.0 81 84 -3.7% 42 45 -7.0% JOD 70.0 56.0 14.0 105 102 3.2% 74 58 29.2% EGP EGP EGP EGP EGP 39.0 58.0 41.0 71.0 70.0 31.0 53.0 33.0 63.0 58.0 8.0 5.0 8.0 8.0 12.0 557 663 574 193 278 658 695 665 208 289 -15.4% -4.6% -13.7% -7.2% -3.8% 218 387 236 138 195 205 374 224 133 169 6.4% 3.6% 5.7% 4.0% 15.5% BHD 39.0 32.0 7.0 79 79 -0.6% 31 26 21.4% 2012 % 2011 % Change in % Points

Currency: Local
Average Room Rate
2012 2011 Change 2012

Rooms Yield
2011 Change

Notes
Figures may not add up due to rounding. Cairo Overall includes: Cairo City and Cairo Pyramid Hotels. Dubai Overall Includes: Dubai Beach, Dubai City and Dubai Apartment Hotels The Middle East Hotel Benchmark Survey was developed and is maintained by Ernst & Youngs Dubai office under the direction of Yousef Wahbah who leads the Transaction Real Estate Advisory Services Group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney, or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, Ernst & Young has not performed an audit or review of the information gathered and does not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of Ernst & Young and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of Ernst & Young. All requests to reproduce this information must be addressed to yousef.wahbah@ae.ey.com. For information regarding the Hotel Benchmark, contact the Dubai office of Ernst & Young at +971 4 332 4000.

Various markets YeartoDate performance (US Dollar)

Ernst & Young Middle East Hotel Benchmark Survey YeartoDate Performance: 1/2012 12/2012
Occupancy
Currency Bahrain Manama Egypt CairoCity CairoPyramids CairoOverall Hurghada Sharm El Shaikh Jordan Amman Kuwait Kuwait Lebanon Beirut Oman Muscat Qatar Doha Saudi Arabia Jeddah Madina Makkah Riyadh United Arab Emirates Abu Dhabi Al Ain DubaiApartments DubaiBeach DubaiCity DubaiOverall US$ US$ US$ US$ US$ US$ 76.0 64.0 86.0 79.0 81.0 81.0 75.0 61.0 83.0 80.0 77.0 78.0 1.0 3.0 3.0 -1.0 4.0 3.0 191 142 121 354 196 250 214 156 114 325 187 233 -10.7% -9.0% 6.8% 8.9% 5.0% 7.3% 146 92 105 281 160 202 162 95 94 260 145 183 -10.0% -3.7% 11.1% 7.9% 10.4% 10.4% US$ US$ US$ US$ 80.0 68.0 75.0 58.0 73.0 65.0 73.0 56.0 7.0 3.0 2.0 2.0 242 223 311 223 222 199 308 231 9.4% 11.9% 0.9% -3.6% 194 153 235 131 164 131 225 131 18.5% 16.5% 4.3% -0.6% US$ 61.0 64.0 -3.0 262 274 -4.5% 162 176 -8.1% US$ 67.0 66.0 1.0 206 214 -3.9% 139 143 -3.1% US$ 54.0 58.0 -4.0 193 223 -13.3% 106 131 -19.1% US$ 52.0 53.0 -1.0 278 289 -3.7% 145 156 -7.0% US$ 70.0 56.0 14.0 149 145 3.2% 105 82 29.2% US$ US$ US$ US$ US$ 39.0 58.0 41.0 71.0 70.0 31.0 53.0 33.0 63.0 58.0 8.0 5.0 8.0 8.0 12.0 97 115 99 33 48 114 120 115 36 50 -15.4% -4.6% -13.7% -7.2% -3.8% 38 67 41 24 34 35 65 39 23 29 6.4% 3.6% 5.7% 4.0% 15.5% US$ 39.0 32.0 7.0 209 211 -0.6% 83 69 21.4% 2012 % 2011 % Change in % Points

Currency: US$
Average Room Rate
2012 2011 Change 2012

Rooms Yield
2011 Change

Notes
Figures may not add up due to rounding. Cairo Overall includes: Cairo City and Cairo Pyramid Hotels. Dubai Overall Includes: Dubai Beach, Dubai City and Dubai Apartment Hotels The Middle East Hotel Benchmark Survey was developed and is maintained by Ernst & Youngs Dubai office under the direction of Yousef Wahbah who leads the Transaction Real Estate Advisory Services Group across the MENA region. It is intended for informational use only. The reader should consult his or her professional investment advisor, attorney, or accountant before making any decision or taking any action based upon the information presented in this document. Benchmark data is provided by individual hotel companies. While we believe the data collected is reliable, Ernst & Young has not performed an audit or review of the information gathered and does not express an opinion or any form of assurance on the accuracy of such information. This report is also proprietary of Ernst & Young and no part of this report, in whole or in part, may be reproduced or transmitted without written consent of Ernst & Young. All requests to reproduce this information must be addressed to yousef.wahbah@ae.ey.com. For information regarding the Hotel Benchmark, contact the Dubai office of Ernst & Young at +971 4 332 4000.

Ernst & Young Assurance | Tax | Transactions | Advisory About Ernst & Young Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 167,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential. Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit www.ey.com The MENA practice of Ernst & Young has been operating in the region since 1923. For over 85 years, we have evolved to meet the legal and commercial developments of the region. Across MENA, we have over 4,000 people united across 18 offices and 13 Arab countries, sharing the same values and an unwavering commitment to quality. For more information, please visit www.ey.com/mena 2012 Ernst & Young. All Rights Reserved. ED None