The hotel construction sector in the Middle East is growing strongly, as highlighted in Lodging Econometrics’ Q3 2024 Middle East Building Pipeline Construction Pipeline Report.
The region closed the third quarter with 610 projects totaling 149,686 rooms, representing a year-over-year (YOY) increase of 4% in projects and 7% in rooms. “These statistics show the continued momentum in the tourism sector in the region,” the report emphasized.
Among these, projects under construction represent almost half of the total, with 296 projects and 79,978 rooms in progress. Significant growth was seen in projects that will begin construction in the next 12 months, which increased by 36% in the number of projects and 51% in the number of rooms, 140 projects and 36,260 rooms.
Meanwhile, the early planning stages saw a YOY increase of 7% in the number of projects and 5% in the number of rooms, reaching 174 projects and 33,448 rooms.
Product conversion in the Middle East is at a high level, with 47 projects and 10,390 rooms. “Conversions in the Middle East grew by 31% in the number of projects and 37% in the number of rooms year-on-year, indicating strong investor confidence,” the report said.
The luxury, luxury, and luxury segments continue to be strong, accounting for 78% of the region’s total pipeline.
In particular, the luxury segment saw a sharp increase, reaching a record of 173 projects and 40,113 rooms-an increase of 7% by project count and 21% by room count YOY.
This trend underscores the region’s focus on attracting high-end travelers. “The emphasis on luxury is in line with the Middle East’s vision of positioning itself as the world’s leading destination for affluent tourists,” the report said.
Among countries, Saudi Arabia leads with an impressive 15% YOY growth in projects and an 18% increase in rooms. The State pipeline now stands at 317 jobs and a record 79,984 rooms.
Egypt follows with 109 projects and 26,286 rooms, achieving a significant YOY increase of 20% in projects and 21% in rooms. The UAE, with 86 projects and 23,743 rooms, ranked third despite showing a 20% decline in the number of projects and 13% in the number of rooms YOY.
Major cities such as Riyadh, Jeddah, and Cairo are leading the way in construction. Riyadh has 90 projects and 18,067 rooms, while Jeddah and Cairo follow with 53 projects/11,336 rooms and 40 projects/8,905 rooms, respectively. Cairo’s growth has been significant, with a 21% YOY increase in projects and 16% in rooms.
Source link
