Even with revenue and room rates falling, hotels in the Middle East are faring better than the rest of the world in the global downturn and rank higher when compared with Europe, Asia-Pacific and the Americas, according to a Deloitte analysis of STR Global data.
“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,” said Maggie Moore, exhibition director of The Hotel Show. “But set against global trends, the region is still comfortably placed when compared with the rest of the world.
“We asked research company Proleads to examine active and under-construction hotel projects scheduled for completion between now and 2013 across the GCC countries.
The results indicate that the continuing development of the regional hospitality industry is both robust and sustainable.”
The Proleads figures show hotel projects under construction across the GCC are valued at more than $7 billion. Most are in the UAE, $4.4 billion, followed by Saudi Arabia, $1.2 billion, Qatar, $620 million, Bahrain, $490 million, Oman, $300 million, and Kuwait, $90 million.
Supporting the Proleads outlook, UK hotel real estate research company Lodging Econometrics has revealed that according to its research, 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.
“How many other parts of the world can boast such figures?” asked Moore.
“Indeed although revenue per available room (revpar) 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.”
The Hotel Show is the Middle East’s leading dedicated trade event for the hospitality and leisure sector and next takes place at the Dubai International Exhibition and Convention Centre from May 18 to 20, 2010.