Report: $23bn worth of hotels to be built in MENA by 2023
The majority of hotel development will take place in Oman, Egypt, the UAE and Saudi Arabia
More than US$23 billion worth of hotel construction contracts are to be awarded throughout MENA by 2023.
In a hotel investment forum from the Arabian Hotel Investment Conference (AHIC) 2020, it revealed the majority of hotel development will take place in Oman, Egypt, the UAE and Saudi Arabia.
Leading in the region is Saudi Arabia, with projects planned close to a value of $9 billion. Currently the Kingdom has at least 21,500 rooms, 36 hotels, resorts and gigaprojects in the pipeline.
As Meed Projects director of content and analysis Ed James explained, KSA’s gigaprojects such as The Red Sea Project, Amaala, Neom and Qiddiya will transform the Arab country in the next three years.
In second place is the UAE with hotel construction contracts adding up to $7.6 billion. Oman follows with $2 billion and Egypt with $1.9 billion by 2023.
“New hotel resorts like Jebel Sifah and the St. Regis Muscat in Oman, the Ritz-Carlton in Sharm el-Sheikh and the MGM Resort and Bellagio Hotel in Dubai are set to continue to make the Middle East one of the most vibrant and diverse tourism destinations in the world,” added James.
Bench Events Chairman and AHIC founder Jonathan Worsley said: “The AHIC Hotel Investment Forecast is an incredibly valuable piece of research that clearly demonstrates that the Middle East still has so much to offer when it comes to future hotel expansion and investment. We’re especially excited to see markets such as Oman and Egypt, which offer incredibly rich and diverse tourism landscapes, return to the forefront of development in the region”.
Worsley continued: “The ever-evolving hotel management models, brands and products coming to the region will be discussed at AHIC 2020 under the theme, ‘Transform Tomorrow’, which will explore the many different ways hotel owners and operators alike are adapting their businesses to compete in the future”.
Commenting on the AHIC Hotel Investment Forecast, Jumeirah Group CEO José Silva, host sponsor of AHIC, said: “Jumeirah Group continues to extend its global footprint with properties that elevate the brand in sought after destinations both regionally and internationally. GCC countries represent fundamental source markets for us and we are constantly interested in finding the right markets and opportunities for us.
“In KSA, our current strategic project is taking place in Makkah – Jumeirah Jabal Omar – our first hotel in the Kingdom, set to open in 2021. We are also very interested in the mega projects that Saudi Arabia is heavily investing in and that we believe presents an excellent business proposition for Jumeirah, such as NEOM Metropolis and the Red Sea,” he continued.
“Other GCC projects in the pipeline include our continued expansion in Bahrain and our Muscat Bay property in Oman, which will be completed later this year. We understand the needs and expectations of the regional markets, and we are confident in our ability to carry the UAE’s hospitality success story of Jumeirah to those markets,” added Silva.
Taking place at Madinat Jumeriah in Dubai from April 14 to 16, AHIC will bring together 800 hotel industry leaders and a further 100 speakers.