Only 39% of Gulf hotel projects are on schedule
33% delayed, 13% on hold and 15% scrapped, says new report
Only 39 percent of new hotel projects in the Gulf that were in the pipeline six months ago are still on target to open on schedule, new research revealed on Wednesday.
Another 33 percent of plans have been delayed by more than six months, 13 percent are on hold and another 15 percent of new hotel plans have been scrapped.
Despite this, there are still an estimated 86,000 confirmed hotel rooms in the supply pipeline for the GCC to 2011, according to research by TRI Hospitality Consulting.
The company said its study had highlighted significant changes to the underlying data in the past six months, indicating the impact of wider economic global slowdown.
The research completed this month indicates that only 39 percent of hotel keys in the pipeline six months ago are still on target to open on schedule or with a slight delay.
Emma Davey, associate director, TRI Hospitality Consulting, said: "The future hotel supply situation will continue to change as developers watch the performance of local and global economies.
"It is expected that several projects, particularly those not yet under construction, and due to open from 2011 will be subject to further delays or be cancelled. The main pressure on new developments is availability of project financing."
TRI Hospitality Consulting is a global management consultancy, specialising in the fields of hotels, tourism, leisure and real estate.