The good news continues for the Middle East in 2007 with revenue per available room (revPAR) growing 14.9% to reach US$112 for the first quarter according to preliminary results from the HotelBenchmark(TM) Survey by Deloitte. The rate of growth has continued at the same pace as last year - with revPAR improvements being fuelled by increases in average room rates. However, unlike last year, hoteliers have also managed to push up occupancy levels by 3.2% to reach 71% - after battling the effects of continuing terrorism threats and increases in hotel supply in 2006.

Once in the shadows of dominate Dubai, Muscat and Abu Dhabi now lead the way in terms of revPAR growth. Muscat has got off to a good start with revPAR up 61.5% driven by a combination of strong occupancy growth and a 46.1% increase in average room rates. The strong performance has been exacerbated by the closure of two key hotels for extensive refurbishment, in advance of the Gulf Cooperation Council (GCC) Heads of State Conference at the end of 2007. With Oman marketing itself, especially to Europe, and with a new airport terminal in the pipeline with the capacity of handling 12m passengers by 2010 and a further 36m by 2050, hotel performance will continue to benefit.

As Abu Dhabi's tourism industry continues to grow so does its revPAR - up 60.4% to US$203 for the first quarter of 2007. Bolstered by increasing numbers of visitors average room rates have risen from US$97 to US$244 in two years. With its own airline - Eithad Airways - many new hotels and a concerted push to drive tourism, it's not surprising that Abu Dhabi boasts one of the highest occupancies and average room rates in the Middle East.

Markets across Egypt are showing signs of recovery following a number of bombings at popular tourist resorts in 2005. After recording a drop in revPAR in 2006, there has been a marked turnaround with - Hurghada and Red Sea Resorts - enjoying growth in excess of 20%, albeit from a low base.

Lorna Clarke, Executive Director of HotelBenchmark(TM) comments: 'Hotel performance in the Middle East has continued to grow at the same pace as last year driven by ongoing investment in the region. With tourism authorities focusing on driving up visitor numbers and the increasing appeal of the region as a business and leisure destination, we expect the Middle East to continue to do well this year.'

Rob O'Hanlon, Tourism, Hospitality and Leisure Partner, Deloitte Middle East added: 'With occupancies across Dubai hovering around 90% it really comes as no surprise that developers and operators continue to race to build hotels to meet the needs of travellers to the region. However, what is more interesting, is that some less well know markets - such as Muscat - are showing signs of staggering growth and will continue to steal some of the limelight from Dubai as they continue to evolve'.

Other results include:

• Doha boasted the third highest occupancy after Dubai and Muscat at 84.4% while Beirut recorded the lowest at 28.9%. Occupancy in Beirut declined 48.1% compared to first quarter 2006 as it continued to feel the affects of the attacks which took place last summer.

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