The rate at which hotels are being cancelled or delayed has slowed considerably in recent months.
According to research by TRI Hospitality Consulting, during the second quarter of 2009 only three per cent of confirmed pipeline hotel keys in the GCC have been put on hold or cancelled, compared to 28 per cent in the period from Q3 2008 to Q1 2009, the website Ameinfo.com reported.
Furthermore, only 10 per cent of confirmed pipeline hotel keys have been subject to delays over six months, or subject to further delays, since the opening dates recorded as in Q1 2009. This is in comparison to the 33 per cent from Q3 2008 to Q1 2009.
In the past nine months the projections for total room supply across the GCC in 2010 have dropped by 24,000 keys, due to cancellations and delays. Total supply in 2010 is now estimated at 327,355 keys, this is equivalent to a 6.8 per cent reduction in total room supply expected by 2010, compared to projections in Q3 2008.
"Despite the combined cancellations and delays since Q3 last year, there have also been some new hotel announcements. However, the consolidation period for properties under development is not yet over as the fate of properties on hold is still largely undecided," said Emma Davey, Associate Director, TRI Hospitality.
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