FOXTROTS

Fox – sly. Trots – left-leaning (Trotsky) plus its more insalubrious meaning.

Foxtrots – leading the industry in a dance.

Hotels in Egypt

Our research indicates bad news for Egypt’s hotel business is getting worse. Over H1 in 2014, occupancy fell a big 29%, see table, meaning an almost-50% fall since 2010.

(The Arab Spring started in December 2010, and January 2011 in Egypt.)

In 2013, occupancy increased, meaning these new results wipe out the gain in 2013.

There was growth in average room rate, of 8% and 16% since 2010. However, this will not make up for the fall in occupancy.

Hotel results in Egypt, Jan-Jun

Item                                 2014      2013     2012

Occupancy,%                  29.9      42.2       38.1

Growth over prev yr,%    -29.1     10.7       NA

Growth over 2010,%       -49.0     -28.0     -35.0

ARR,US$*                       61.3      56.8       52.2

Growth over prev yr,%   7.9         9.0         NA

Growth over 2010,%      15.8       7.3        -1.5

Notes: *ARR = average room rate, at US$1 to E£7.15. Source: Travel Business Analyst.

The Fox

Remember, I’ll be famous after I’m dead.