Dubai and Makkah lead ME new hotel room supply

Value-for-money hotels in the mid-market sector are witnessing increasing demand in Dubai

Dubai, UAE.
Dubai, UAE.

Hotel construction activity in the Middle East continues to gain momentum despite a slowdown in the hospitality industry across the region with Dubai and Makkah reported to be driving the construction activity in the Middle East, according to Khaleej Times.

Dubai has 20,451 rooms in 69 hotel projects under construction, while Makkah has 23,060 rooms in 14 hotel projects underway, according to STR's December 2016 Pipeline Report.

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Overall, the Middle East region has under contract 158,441 rooms in 555 projects, and industry experts expect overall projected occupancy rates to be maintained at a strong 77% until 2018.

Despite concerns over a slowdown this year in foreign visitor spending, hospitality revenue in the UAE is forecast to increase by 10.8% annually to USD $9.8 billion (AED 36 billion) by 2020.

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