Skift Take
It's not surprising that the Middle East is prioritizing hotel development to accommodate a growing influx of tourists. This proactive approach aligns with their broader economic and tourism strategies to foster long-term growth and competitiveness in the global tourism market.
Middle East Travel Roundup
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In the second quarter of 2023, the Middle East's hotel construction pipeline has seen significant growth, marking its highest project count since the first quarter of 2020, according to Lodging Econometric’s Middle East Hotel Construction Pipeline Trend Report.
The report shows a steady 10% year-over-year increase in the number of projects and a 5% rise in room count, bringing the total pipeline to 597 projects encompassing 146,521 rooms.
Top five countries that account for 92% of all hotel projects in the Middle East's current pipeline:
Saudi Arabia leads the Middle East in hotel construction projects, boasting an all-time high of 276 projects and 72,144 rooms. The United Arab Emirates (UAE) follows with 106 projects and 27,921 rooms. Egypt has 91 projects with 20,814 rooms. Qatar has 43 projects with 10,267 rooms. Oman has 33 projects with 6,792 rooms.Within the UAE:
Dubai features prominently in the construction pipeline with 67 projects comprising 19,200 rooms. Ras al Khaimah has 15 projects with 4,464 rooms. Sharjah has 13 projects with 1,766 rooms.Top five cities represent 42% of the total projects and 36% of the total rooms in the pipeline.
Saudi’s Provincial region leads with 113 projects and 25,312 rooms. Riyadh has record-high 86 projects with 16,618 rooms. Jeddah’s 50 projects have 10,995 rooms. Doha holds 38 projects with 9,383 rooms. Cairo has 32 projects with 7,287 rooms.Top five hotel companies account for 57% of all projects in the region's total pipeline
Hilton Worldwide has achieved record project counts with 104 projects and 25,785 rooms. Accor with 79 projects (17,798 rooms). Marriott International with 78 projects (23,534 rooms). IHG Hotels & Resorts with 55 projects (12,974 rooms). Radisson Hotel Group with 23 projects (4,686 rooms).Brands
Doubletree by Hilton brand has 29 projects with 6,418 rooms. Accor's Novotel brand follows with 11 projects (2,351 rooms). Marriott's Courtyard brand has 14 projects (3,735 rooms). IHG Hotels & Resorts' InterContinental brand has 13 projects (3,546 rooms). Radisson's Blu brand features in 9 projects (1,585 rooms).2023
In the first half of 2023, the Middle East has witnessed the opening of 16 new hotels comprising 3,892 rooms, with an additional 93 new hotels and 21,306 rooms scheduled to open by the end of the year.