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.

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