The Middle East hotel construction pipeline continued its upward trajectory in the fourth quarter of 2023, according to the latest report from Lodging Econometrics (LE).
The region’s total project pipeline grew by 11 percent at the end of fourth quarter of 2023, registering its highest year-over-year (YOY) growth since 2018 while the number of rooms increased by 2 percent YOY.
Key findings of The Q4 2023 Hotel Construction Pipeline Trend Report for the Middle East from LE are as follows:
- At the close of fourth quarter 2023, the total pipeline stood at 607 projects with 145,984 rooms
- Under construction portfolio stood at 309 projects (up 2 percent YOY) with 83,308 rooms
- Planned construction (next 12 months) comprises 110 projects (up 7% YOY) with 26,454 rooms
- Projects in early planning are up 32 percent YOY, standing at a record high of 188 projects with 36,222 rooms.
- Luxury projects reached an all-time high of 154 projects and 30,421 rooms. Upper upscale projects also hit record highs with 160 projects and 41,662 rooms, accounting for 25 percent of the projects in the region’s total pipeline.
- Hotel renovations and brand conversions in the end of fourth quarter of 2023 grew 46 percent YOY by projects, reaching a new record of 54 projects/11,484 rooms. Conversion projects stood at a record 43 projects/8,790 rooms.
Leading markets:
- Saudi Arabia: 300 projects with 72,761 rooms (all-time high)
- United Arab Emirates (UAE): 103 projects with 27,152 rooms
- Egypt: 95 projects with 23,641 rooms (all-time high)
- Qatar: 36 projects with 8,922 rooms
- Oman: 32 projects with 6,370 rooms
Top cities:
- Provincial cities: 133 projects with 28,656 rooms
- Riyadh: 90 projects with 17,804 rooms (all-time high)
- Jeddah: 55 projects with 11,686 rooms (record high)
- Cairo: 38 projects with 8,624 rooms
- Doha: 32 projects with 8,086 rooms
- Dubai: 65 projects with 19,170 rooms
The region had 37 new hotels/9,617 rooms open in 2023. LE forecasts 96 new hotels with 18,881 rooms to open in 2024 and 95 new hotels with 24,871 rooms in 2025.
(Writing by Senthil Palanisamy; Editing by Anoop Menon)
(anoop.menon@lseg.com)
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