Middle East construction pipeline grew 5% through 1Q24

INTERNATIONAL REPORT — The construction pipeline in the Middle East grew 5% year-over-year in the first quarter of 2024, according to the latest data from Lodging Econometrics (LE). 

The region’s pipeline stood at 612 and 144,222 rooms, with 302 projects and 80,589 rooms in the under-construction phase and 133 projects and 30,447 rooms scheduled to start construction within the next 12 months, which reflects a 28% YOY increase in projects and a 24% YOY increase in rooms. There are 177 projects and 33,186 rooms in the early planning stages, which represents an increase of 18% for projects and 12% for rooms compared to Q1 2023.

“The new construction pipeline in the Middle East has been through many ups and downs during and since the pandemic,” said Bruce Ford, SVP and director of global business development for Lodging Econometrics. “At present and over recent quarters, many developers have decelerated their schedules to push openings out. Many of the major brands have stepped in to keep key projects on track.”

At the end of the first quarter, 44 new projects and 8,346 rooms were announced in the Middle East, while 24 new construction starts totaled 5,733 rooms.

Hotel renovations and brand conversions are up 5% by projects YOY through the first quarter, with 45 projects and 10,216 rooms. 

The Middle East opened 21 new hotels and 3,363 rooms in the first quarter, with an additional 86 hotels and 17,748 rooms scheduled to open for the rest of the year. LE analysts predict another 101 new hotels and 26,743 rooms to open in the region in 2025.

Previous LE reports

Last week, we discussed that a huge portion of Europe’s pipeline is under construction. 

In late May, we discussed the pipeline in APEC (Asia Pacific excluding China).

In mid-May, we discussed the booming pipeline in Latin America.

In mid-May, we discussed the hotel construction pipeline in Canada. 

Earlier in May, we discussed why the U.S. hotel construction pipeline is surging.