Despite the ever-growing number of new hotel launches and additional hotel apartments mushrooming all across Dubai and the rest of the region in a blink, there remains room for expansion, or so believe the 492 hotels that will soon be adding more than 100,000 rooms to the region’s hospitality landscape.

According to the latest STR Global Construction Pipeline Report, the Middle East/Africa hotel development pipeline comprises 492 hotels, totalling 120,345 rooms.

You could well say that there is room to grow in the Gulf’s hospitality sector.

STR highlights that the total active pipeline data includes projects in the ‘In Construction, Final Planning and Planning’ stages, but does not include projects in the pre-planning stage. Which means that hotels that have been vaguely announced and not followed up with real action on the ground haven’t been included in this pipeline.

Among the chain scale segments, the Upper Upscale segment, with 37,053 rooms, accounted for the largest portion of rooms in the total active pipeline with 30.8 per cent of the region’s rooms.

Three other segments each made up more than 15 per cent of rooms in the region’s total active pipeline: the Unaffiliated segment (21.5 per cent with 25,845 rooms); the Luxury segment (20.3 per cent with 24,429 rooms); and the Upscale segment (18.2 per cent with 21,920 rooms). The Economy segment made up the smallest portion of rooms in the total active pipeline with 1.1 per cent and 1,270 rooms.

Middle East/Africa pipeline by Chain Scale segment for April 2013 (No. of rooms)

Chain Scale

Existing Supply (as of April 30, 2013)

In Construction

Total Active Pipeline*

Luxury

53,639

15,488

24,429

Upper Upscale

91,230

21,836

37,053

Upscale

74,661

13,395

21,920

Upper Midscale

55,145

2,857

6,210

Midscale

22,563

1,026

3,618

Economy

5,351

519

1,270

Unaffiliated

401,213

13,920

25,845

Total

703,802

69,041

120,345

*Includes those projects in the In Construction, Final Planning and Planning phases

Source: STR Global