UAE leads Middle East’s hotel construction pipeline

Posted on 16th May 2019

UAE leads Middle East’s hotel construction pipeline
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According to *Constructionweekonline news report, with more than 56,000 hotel rooms under construction, the UAE leads the Middle East’s hotel construction pipeline, figures from US-headquartered hospitality research and benchmarking firm STR have revealed.

According to the group’s April 2019 update, 424 hotel projects, comprising 125,052 rooms, are currently under construction in the Middle East, alongside 141 projects with 25,056 rooms in Africa.

Reporting an additional 30,203 and 45,991 rooms in planning stages, the Middle East’s pipeline represents a 9.3% year-on-year increase in the number of rooms in the final development stage.

Between both the Middle East and Africa, four countries have more than 4,000 rooms under construction – led by the UAE with 56,701 rooms, representing 34% of the country's existing supply.

Neighbour Saudi Arabia followed with 42,571 rooms, or 43% of the kingdom’s existing supply, while Oman’s 4,129 rooms – 22% of the sultanate’s existing supply – brought up the rear.

The figures comes after a flurry of hotel-related announcements across the GCC over the past year.

Last month saw American hotel giant Hilton expand its reach into Saudi Arabia, adding nearly 2,000 rooms in the kingdom through a management agreement with Umm Al Qura for Development and Construction Company.

Hilton and Saudi’s Shomoul Holding Company signed a contract to develop and operate four hotels at the $3.5bn (SAR13bn) The Avenues – Riyadh not long before as well.

The development, one of Saudi Arabia's top construction projects this year, will include space for 1,300 stores, in addition to five multi-purpose towers consisting of hotels, exhibition, conference halls, residential apartments, offices, and medical facilities.

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