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Video: Construction Week In Focus | The GCC's hotel projects pipeline

S02E12 of Construction Week's exclusive YouTube series features a guest from Hotelier Middle East to review what the future holds for hospitality development in the Gulf

It has been a testing time for the global hotel industry, but will the GCC’s vision to become a leading tourism destination give rise to a boom in hospitality-inspired projects? 

The hotel construction pipeline in the Middle East and Africa is continuing to grow, according to a report by analysts at Lodging Econometrics. The continued growth has resulted in 875 projects or 216,045 rooms combined so far, and the total Middle East pipeline has 594 projects or 170,490 rooms, up 23% by rooms year-on-year (YoY).


This is the 16th consecutive quarter of pipeline growth seen by the Middle East, where 358 projects – or 113,830 rooms – are under construction, up 13% by projects YoY.

Those scheduled to start construction in the next 12 months are up by 9%, while projects in the early planning stage are up by 31%.

The US accounts for 40% of the hotels in the global pipeline, while China accounts for 20%. Globally, the cities with the largest pipeline project count are New York with 181 hotels and 30,225 guestrooms, Houston with 148 hotels and 16,398 guestrooms, Dubai with 145 hotels and 40,733 guestrooms, and Seoul 126 hotels and 22,199 guestrooms. 

Dubai and the UAE will continue to lead the development of luxury hospitality in the GCC well into the 2020s, with new data showing the markets account for a combined 61% of the region’s current five-star hotel pipeline.

READ: Emaar's Dubai hotels to cut food waste with data analytics tech

Already home to 73% of all five-star hotels in the GCC, the data, which was commissioned by Arabian Travel Market (ATM), further reinforces Dubai’s reputation as the Middle East’s top luxury tourism destination.

While the number of five-star projects under way in the UAE dominated the regional spread, the total number only accounted for 35% of all hotels under construction across the emirates, with Dubai accounting for the bulk of all projects.

This compares to 14% of projects in Saudi Arabia, 20% in Kuwait, 19% in Bahrain and 11% in Oman.

In the latest episode of Construction Week In Focus, Oscar Rousseau, deputy editor of Construction Week, and Sarakshi Rai, senior online editor of Hotelier Middle East, discuss the future of hotel construction in the region.

Construction Week In Focus is a weekly bulletin of the Middle East's top news from the real estate development, contracting, MEP, facilities management, and equipment sectors.

Subscribe to the Construction Week channel for the latest from the region's construction sector.

Construction Week In Focus episodes are published each Tuesday at 9am.

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Construction Week - Issue 764
May 31, 2020