Lodging Econometrics said the region is experiencing a
surge of projects scheduled to start in the next 12 months. Saudi Arabia and
Egypt also have pipelines with record-high levels.
INTERNATIONAL
REPORT — The total hotel construction pipeline in the Middle East has surpassed
600 projects through the first half of 2024, according to the latest data from
Lodging Econometrics. The total pipeline has expanded to 607 projects and
147,088 rooms, which is a 2% increase in projects year-over-year and a 1%
increase in rooms.
For
those developments, 300 projects and 80,867 rooms are currently under
construction throughout the Middle East, while 145 projects and 34,706 rooms
are scheduled to start in the next 12 months, which represents an astounding
42% YOY increase in projects and a 45% increase in rooms. Through the first
half of 2024, there are 162 projects and 31,515 rooms in the early planning
stages.
Saudi
Arabia continues to lead the region in development, with all-time highs of 320
projects and 79,756 rooms. Egypt is second with record levels with 107 projects
and 26,185 rooms, while the United Arab Emirates is third with 87 projects and
22,831 rooms. Oman is fourth with 28 projects and 5,009 rooms, and Qatar is
fifth with 27 projects and 6,482 rooms. Those five countries represent 94% of
all projects and 95% of rooms in the Middle East’s total pipeline.
Riyadh,
Saudi Arabia, leads cities in the region with 89 projects and 17,784 rooms,
followed by Jeddah, Saudi Arabia, with 58 projects and 12,248 rooms. Cairo is
in third position with 39 projects and 8,789 rooms, while Doha, Qatar, is
fourth with 24 projects and 5,794 rooms. Makkah, Saudi Arabia, is fifth with 22
projects and 14,353 rooms.
There
were 35 new hotels and 6,308 rooms that opened in the first half of 2024, and
LE expects 66 additional hotels and 13,723 rooms scheduled to open the rest of
the year. LE expects 102 new hotels and 25,914 rooms to open in 2025 and 121
new hotels and 24,766 rooms to open in 2026.
LE
analysts say this sustained growth in hotel development across the Middle East
reflects strong investor confidence and anticipation of continued expansion in
the region’s tourism and hospitality sectors.
PREVIOUS LODGING ECONOMETRIC REPORTS
In
late September, we discussed how China’s pipeline is bursting with record
construction numbers. We also talked about how APEC’s (Asia Pacific
excluding China) construction pipeline is also booming.
In
mid-September, we discussed that almost half of Europe’s pipeline is currently
under construction.
Earlier
in September, we talked about why the pipeline in Latin America is surging.