Aug. 23–DUBAI — The Middle East hotel sector recorded an unimpressive performance in July after dips across three industry performance indicators, according to industry tracker STR.

Occupancy rates across the Middle East dropped 2.8 percent to 56 percent, while average daily rate (ADR) slipped 16.1 percent to $134 (SR502.50), STR said in its report.

The steepest fall was recorded in revenue per available room (RevPAR), derived by multiplying a hotel's ADR by its occupancy rate, which declined 18.4 percent to $75.20.

Saudi Arabia posted a weak performance for July with RevPAR down 35.2 percent to SR300.14, while ADR dipped 31.6 percent to SR625.78 and occupancy levels were at 48 percent, a decrease of 5.2 percent compared to July 2016.

Although the country's hotel performance is typically lower during the summer months, the double-digit declines for July 2017 reflected the impact of low oil prices and high hotel supply growth, STR analysts said.

Hotels in Bahrain likewise saw declines in the performance indicators after earlier experiencing a boon from post-Ramadan celebrations, STR said.

RevPAR fell 12.4 percent to BD32.03 (SR 319.45) and ADR slipped 11.5 percent to BD64.91 in July. Occupancy levels at Bahrain hotels minimally affected despite a dip to 49.3 percent, the industry tracker said.