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Middle East’s Hotel Construction Pipeline Shows Slight Deceleration

Analysts at Lodging Econometrics (LE) state in the first quarter of this year, the hotel construction pipeline in the Middle East decelerated slightly to 607 projects/172,182 rooms, down three percent and five percent respectively, year-over-year (YOY).  

Projects currently under construction are at 357 projects/114,817 rooms. Projects scheduled to start construction in the next 12 months stand at 113 projects/27,872 rooms, and projects in the early planning stage are at 137 projects/29,493 rooms. The Middle East had 15 new hotels/6,527 rooms open in the first quarter of this year.

Countries with the greatest number of projects in the construction pipeline are Saudi Arabia with 213 projects/69,038 rooms and the UAE with 186 projects/56,188 rooms.  Following distantly is Egypt with a record 65 projects/16,133 rooms, then Qatar with 56 projects/13,965 rooms, and Oman with 39 projects/7,545 rooms. Dubai continues to lead the construction pipeline in the UAE with 147 projects/45,647 rooms.

Cities with the largest hotel construction pipelines are the provincial region with 70 projects/14,425 rooms; Riyadh with 61 projects/11,892 rooms; Jeddah with 52 projects/11,099 rooms; Doha, Qatar with 49 projects/11,660 rooms and Makkah with 30 projects/31,622 rooms. In the Middle East, 47 percent of the rooms in the construction pipeline are found within these five cities.