UAE dominates GCC hotel development pipeline

UAE dominates GCC hotel development pipeline

The UAE, driven by projects in Dubai, accounts for 45% of the GCC region’s current hotel development pipeline, according to data issued by industry analyst ProTenders.

The percentage figure equates to 652 projects worth a combined value of $107.8 billion currently planned, on hold or underway in the UAE.

Of this figure, $41.6 billion-worth of hotel projects are currently under construction in the Emirates.

Dubai is the UAE’s largest hotel market, with 721 hotels and hotel-apartments currently operating in the emirate, boasting a combined guestroom inventory of 118,382.

By comparison, Abu Dhabi is home to 168 hotels and a combined inventory of 33,000 guestrooms.

Dubai’s reputation as the UAE’s biggest hotel investment market is further evidenced by the number of overnight guests reported by the emirate compared to the capital. In year-to-date results, Dubai has welcomed 13.39 million overnight guests to date in 2019 compared to Abu Dhabi’s 2.48 million, while revenue per available room (RevPAR)in Dubai during the first five months of 2019 was AED362.00 ($98.57), compared to AED270.00 in the capital.

According to Dubai Tourism estimates, Dubai’s hotel room inventory will reach 132,000 by the end of 2019, up from 107,000 at the end of 2017. The increase in capacity will accommodate Dubai Tourism’s forecast – based on 2018 trends – that occupied room nights in the city will reach 35.5 million by the end of 2019.

"Dubai’s hotel industry remains at the forefront of cross-sector efforts to drive tourism growth, as we collectively work towards realising our Tourism Vision and enable our 2020 goals,” said Helal Saeed Almarri, the Director General of Dubai Tourism.

“Dubai’s position as the fourth most-visited city in the world, and the consistent growth in overnight visitation, has been achieved in large part thanks to the efforts of our committed stakeholders in the domestic hotel and hospitality sector.” 

Dubai property investment opportunity - The First Group