Bahrain's hotels show signs of rebounding

What's Up: Hotel business in Bahrain is showing signs of improvement, after the industry was hit hard during political protest in last year.

Hotel business in Bahrain is showing signs of improvementafter the industry was hit hard during political protests last year.

Occupancy levels in Manama, the capital, surged by 70 per cent last month, to 42.5 per cent, compared with April last year.

Meanwhile, average daily rates grew by 30.4 per cent to US$242.35, according to figures released by STR Global, a research firm based in London. This meant that revenue per available room - an important industry indicator - grew by 121.1 per cent, to $103.10 last month in Manama.

"We are better than last year," said Philippe Van der Borgh, the chief financial officer of Sofitel, while speaking about the company's luxury hotel in Bahrain, which opened last year as protests broke out.

But, it's "still difficult", he said.

The cancellation of the Formula One Grand Prix last year meant hoteliers missed out on the year's single biggest revenue event for the industry. Last month, this year's Grand Prix did go ahead in Bahrain despite considerable controversy surrounding it.

"The hotels and restaurants sector was hardest hit in 2011," according to Bahrain's Economic Development Board. "Although it showed significant recovery throughout [the rest of] 2011 following a difficult first half [of] the year."

Amman and Muscat have also experienced significant improvements in their hotel sectors compared with last year. In Amman, revenue per available room increased by 30.7 per cent last month to $116.02 compared with the same month last year, the data from STR Global showed. In Muscat, revenue per available room was up 27.5 percent to $174.93.

Dubai's hotels, which have been benefiting from an influx of tourists, enjoyed a 10.7 per cent increase in average room rates to $281.91 last month.

Meanwhile, hotels in Abu Dhabi experienced a 13.5 per cent decline in occupancy levels, to 59.7 per cent, the data showed.

Riyadh in Saudi Arabia had an occupancy decline of 11.3 per cent.