2 min read
Middle East Can Boast Its Records in Hospitality Construction for Q4 2023
by
Anna Fischer
Published 12 Mar 2024
Lodging Econometrics released The Q4 2023 Hotel Construction Pipeline Trend Report for the Middle East. It reveals new details about the number of construction projects in the hospitality sphere, representing its new records and rapid growth.
Source: Unsplash
At the close of Q4 2023, the region reached the line at 607 projects, including 145,984 rooms. The projects' gain is 11% over the previous year, and the rooms' rate is 2%. This growth has been the most significant since Q1 2018. [?]
As of the Q4 timeframe, 309 projects are currently under construction, including a whopping 83,308 rooms. 110 designs are scheduled to commence construction within the next 12 months, with an estimated total of 26,454 rooms — reflecting a 7% year-on-year increase.
Furthermore, projects still in the early planning stages have increased by an impressive 32% compared to the previous year, with a record score of 188 projects and an estimated 36,222 rooms.
In the Middle East, Saudi Arabia and the UAE are the most active countries in the hotel construction sector, accounting for almost 70% in the pipeline. Among these countries, the UAE leads the way with 103 projects in the construction pipeline, expected to offer a staggering 27,152 rooms once completed. This highlights the robust growth of the hotel industry in the region, as it seeks to cater to the increasing demand from both business and leisure travelers.
As of the end of 2023, the number of luxury projects has hit a record high of 154, totaling 30,421 rooms. Additionally, the upper-upscale projects in the Middle East have also recorded their highest-ever numbers, accounting for 25% of all the region's pipeline. At the end of Q4, the total number of upper-upscale projects in the Middle East stood at 160, including 41,662 rooms. Also, hotel renovations and brand conversions in the Middle East have grown 46% in that timeframe. [?]
As of the Q4 timeframe, 309 projects are currently under construction, including a whopping 83,308 rooms. 110 designs are scheduled to commence construction within the next 12 months, with an estimated total of 26,454 rooms — reflecting a 7% year-on-year increase.
Furthermore, projects still in the early planning stages have increased by an impressive 32% compared to the previous year, with a record score of 188 projects and an estimated 36,222 rooms.
In the Middle East, Saudi Arabia and the UAE are the most active countries in the hotel construction sector, accounting for almost 70% in the pipeline. Among these countries, the UAE leads the way with 103 projects in the construction pipeline, expected to offer a staggering 27,152 rooms once completed. This highlights the robust growth of the hotel industry in the region, as it seeks to cater to the increasing demand from both business and leisure travelers.
As of the end of 2023, the number of luxury projects has hit a record high of 154, totaling 30,421 rooms. Additionally, the upper-upscale projects in the Middle East have also recorded their highest-ever numbers, accounting for 25% of all the region's pipeline. At the end of Q4, the total number of upper-upscale projects in the Middle East stood at 160, including 41,662 rooms. Also, hotel renovations and brand conversions in the Middle East have grown 46% in that timeframe. [?]
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