Hotel valuations to rebound in Muscat
The country's hotel valuation index is expected to rise by 21.9% over the period of 2019-2022
Hotels in Muscat will increase in value by nearly 22% by 2022, largely erasing the loss of value of hotel investments witnessed over the period 2015-2018, according to hotel and hospitality analysts, HVS.
With oil price falls and a subsequent loss of confidence in the Omani economy in 2015-2018, the value per hotel key - the standard industry metric for valuing hotels - lost 31% in value between 2015-2018.
However, the latest HVS assessment points to increasing hotel values with a rise in HVS's hotel valuation index of 21.9% over the period of 2019-2022.
This perspective comes as there is increasing discussion in Oman of ways in which the hospitality industry and tourism can grow.
Responding to the positive outlook highlighted by the HVS report, Mac Thomson, chief executive officer of hotel and asset management group, MMIS, said: “The latest report from HVS is a reminder for the hotel and hospitality sector that most trends in the industry are cyclical.”
“The downturn in the market over the past few years was a result of many factors out of the industries control. Now it is time for the private sector to play its part in promoting Oman more as a very attractive leisure destination and providing the accommodation and experiences that local and international visitors are seeking."
“Hotel operators need to look at the growing tourism markets such as China and India, and understand what will encourage them to visit Oman,” he said.
“For example, the number of Chinese tourists travelling to the GCC is expected to increase by 81%, from 1.6 million in 2018 to 2.9 million in 2022. This represents less than 6% of the Chinese international tourists and less than 4% of the Chinese population have passports. So there remains a massive market potential, as long as local operators take efforts to encourage this market to visit Oman," Thomson said.