Hotel room revenues expected to climb

15/04/2011 - Dubai Lifestyle News Posted by Bob Brunskill
Hotel room revenues expected to climb

Revenue from hotel rooms in the GCC are expected to reach $22 billion (£13.4 billion) by the end of 2012, a forecast from Alpen Capital has revealed.The investment bank added that this figure is expected to rise further still to $37 billion by 2015.According to the organisation, revenues collected from hotels rooms will grow at a rate of 11 per cent compared to 2010 levels, with the UAE a key market within the GCC region.Sameena Ahmad, managing director at Alpen Capital, said: "Our outlook for the hospitality industry remains positive as the industry bears a strong correlation with the healthy GDP growth projected for the region and there are several strong growth drivers for the industry."Alpen Capital noted that hotels in the UAE are expected to benefit from the growing sports tourism market, with an increase in visitor numbers expected around the time of the Dubai Desert Classic and Formula 1 in Abu Dhabi and Bahrain.However, the coming years will not be without their challenges, the investment house said. Recent political unrest across certain GCC countries may have a negative impact on room rates.