Hotel projects underway in GCC valued at $7 billion
Market research company, Proleads Global, has revealed that the total value of hotel projects under construction across the GCC until 2013 is estimated at $7 billion (Dh25.69bn).
According to the data, projects in the UAE alone are valued at $4.4bn, while Saudi Arabia comes in second with $1.2bn. The following includes Qatar ($620m), Bahrain ($490m), Oman ($300m) and Kuwait ($90m).
"We asked research company Proleads to examine active and under-construction hotel projects scheduled for completion between now and 2013 across the GCC," said Maggie Moore, Exhibition Director of The Hotel Show. "The results indicate that the continuing development of the regional hospitality industry is both robust and sustainable."
The Hotel Show, which runs from May 18 until 20, is a trade event for the hospitality and leisure sector.
"It has undoubtedly been a tough time for the hospitality industry worldwide in 2009 and the Middle East has not escaped totally unscathed," said Moore. "But set against global trends, the region is still comfortably placed when compared with the rest of the world."
According to supporting data through a Deloitte analysis of STR Global's figures, hotels in the Middle East have fared better than the rest of the world in the global downturn, ranking higher when compared with Europe, Asia-Pacific and the Americas,
"While the number of hotel projects under construction in the Middle East has slowed down, as regional economies react to the challenges of the global economic conditions, the pace still remains considerably better than most," added Moore.
Supporting the Proleads outlook, UK hotel real estate research company Lodging Econometrics has revealed the Middle East can expect 98 new hotels with 29,226 rooms to open in 2010 and 115 hotels with 33,765 rooms in 2011.
"Indeed although revPAR (revenue per available room) rates have declined year-on-year in the Middle East to approximately $125, it compares favourably with revPAR figures of $81 and $55 in Europe and the Americas respectively, over the same period," added Moore.
"With concerns about hotel oversupply, the re-examining of plans during the slowdown has been a healthy exercise," she said. "An important factor going forward will be what happens in the global and regional economies to encourage people to travel and impact hotel occupancies."
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