PORTSMOUTH, NH – The Q2 2024 Middle East Hotel Construction Pipeline Trend Report from Lodging Econometrics reveals that hotel construction projects in the region have reached 607 projects with 147,088 rooms at the quarter’s close. This represents a 2% increase in projects year-over-year, while room numbers are up less than one percent YOY.
As of Q2, 300 projects with 80,867 rooms are currently under construction throughout the Middle East. Projects scheduled to start construction in the next 12 months have seen a significant rise YOY, with 145 projects and 34,706 rooms, marking a 42% YOY increase in projects and a 45% increase in rooms. Projects in early planning at the close of the second quarter stand at 162 projects with 31,515 rooms.
Three chain scales dominate the Middle East’s total pipeline in the second quarter, accounting for 77% of projects and 79% of rooms. The luxury chain scale leads with 162 projects/36,342 rooms, followed by the upscale chain scale with 158 projects/42,956 rooms, and the upper upscale chain scale with 148 projects/36,213 rooms.
Countries with the highest number of projects in the construction pipeline at Q2 include Saudi Arabia, reaching all-time highs of 320 projects and 79,756 rooms. Egypt also hit record highs at Q2 with 107 projects and 26,185 rooms. The United Arab Emirates follows with 87 projects/22,831 rooms, then Oman with 28 projects/5,009 rooms, and Qatar with 27 projects/6,482 rooms. These five countries represent 94% of the projects and 95% of the rooms in the Middle East’s total pipeline.
The cities leading in project counts at Q2 are Riyadh with 89 projects/17,784 rooms, Jeddah with 58 projects/12,248 rooms, and Cairo, Egypt with 39 projects/8,789 rooms. Doha, Qatar follows with 24 projects/5,794 rooms, and then Makkah with 22 projects/14,353 rooms.
In the first half of 2024, 35 new hotels with 6,308 rooms opened in the Middle East. An additional 66 new hotels with 13,723 rooms are scheduled to open by year-end. Looking ahead, new hotel openings are forecast to increase slightly in 2025 to 102 new hotels with 25,914 rooms, and further in 2026 with 121 new hotels and 24,766 rooms expected to open.
The article Luxury projects dominate as Middle East hotel pipeline expands slightly YOY first appeared in TravelDailyNews International.
