Hotel performance levels in the Middle East will continue to soften in 2019, says TRI analyst.

Renovations programs of existing properties are set to increase, as the current market cycle provides an excellent opportunity for owners to undertake capital improvements, according to the report.

Hotel trends for the MENA region in 2019 will see the continuation of softening performance levels, said Christopher Hewett, director of TRI Consulting, in an exclusive interview with Hotelier. The number of existing properties undergoing renovations is set to rise, he revealed.  

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Hewett said:  “These trends expected in the MENA are unique as most of the other global markets are experiencing an upward trend in performance.”  

He went on to say that such markets could experience a period of performance stagnation over the next 12-18 months. “This could be followed by downward performance as the projected global economic market cools, he said.

Hewett also cited stronger competition, changing source markets and operational efficiency as some of the key challenges hoteliers will face in the coming year.

Look out for the full interview on the Middle East’s hotel pipeline in the January issue of Hotelier Middle East.