PORTSMOUTH, NH — As seen in the Q3 2024 Middle East Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), the hotel construction pipeline in the region shows upward momentum, standing at 610 projects/149,686 rooms, up 4% by projects and 7% by rooms year-over-year (YOY).
At the close of the third quarter, projects currently under construction stand at 296 projects/79,978 rooms, accounting for 49% of the region’s total pipeline projects. Projects scheduled to start construction in the next 12 months saw significant growth, up 36% by projects and 51% by rooms YOY, to end the quarter at 140 projects/36,260 rooms. Projects in early planning reached 174 projects/33,448 rooms, showing increases of 7% by projects and 5% by rooms YOY. Brand conversions continue to show strength in the region, reaching record-highs of 47 projects and 10,390 rooms, and up 31% and 37% by rooms YOY, respectively.
The luxury, upper upscale, and upscale chain scales account for 78% of the total pipeline in the region and continue to dominate new hotel construction in the Middle East with 477 projects/119,063 rooms. Notably, the luxury chain scale saw considerable growth in the third quarter, reaching a new record-high project count and increasing 7% by projects and 21% by rooms YOY to 173 projects with 40,113 rooms.
Countries with the greatest number of projects in the construction pipeline are led by Saudi Arabia, which increased an impressive 15% by projects and 18% by rooms YOY and closed the quarter with 317 projects and a record-high 79,984 rooms. Egypt follows with 109 projects/26,286 rooms, reaching record-highs and increasing 20% by projects and 21% by rooms YOY. The United Arab Emirates (UAE) ranks third, with 86 projects/23,743 rooms, though showing decreases of 20% by projects and 13% by rooms YOY.
Cities with the largest number of construction projects at Q3 are led by Riyadh with 90 projects/18,067 rooms. Jeddah follows with 53 projects/11,336 rooms, then Cairo with 40 projects/8,905 rooms, showing significant YOY growth of 21% by projects and 16% by rooms.
Through the third quarter of 2024, the Middle East opened 51 new hotels accounting for 9,356 rooms, of which 14 new hotels/2,504 rooms opened in Q3. LE’s forecast for new hotel openings for Q4 2024 anticipates an additional 35 new hotels/6,916 rooms to open by year-end. Looking ahead, LE analysts project 107 new hotels/27,485 rooms to open in 2025, followed by 121 new hotels/25,030 rooms forecast to open in 2026.
About Lodging Econometrics (LE)
For over 25 years, Lodging Econometrics (LE) has been the industry-leading provider of global hotel intelligence and decision-maker contact information. LE custom-builds business development database programs for hotel franchise companies looking to accelerate their brand growth, hotel ownership and management companies seeking to expand their real estate portfolios, and lodging industry vendors wanting to increase their sales. To learn more about our business development programs contact us: +1 603.431.8740, ext 0025 or [email protected].
