The Middle East’s hotel construction sector is experiencing robust growth, as highlighted in Lodging Econometrics’ Q3 2024 Middle East Hotel Construction Pipeline Trend Report.
The region closed the third quarter with 610 projects comprising 149,686 rooms, reflecting a year-over-year (YOY) increase of 4% in projects and 7% in rooms. “These figures showcase the sustained momentum in the region’s hospitality sector,” the report emphasised.
Among these, projects under active construction represent nearly half of the total, with 296 projects and 79,978 rooms currently in progress. Noteworthy growth was seen in projects set to begin construction in the next 12 months, which surged by 36% in project count and 51% in room count, totalling 140 projects and 36,260 rooms.
Meanwhile, early planning phases saw incremental YOY increases of 7% in project count and 5% in room count, reaching 174 projects and 33,448 rooms.
Brand conversions in the Middle East are at record highs, with 47 projects and 10,390 rooms. “Conversions in the Middle East have grown by 31% in project count and 37% in room count year-over-year, signalling strong investor confidence,” the report revealed.
The luxury, upper-upscale, and upscale segments continue to dominate, accounting for 78% of the region’s total pipeline.
In particular, the luxury segment has seen a sharp uptick, reaching a record 173 projects and 40,113 rooms—an increase of 7% by project count and 21% by room count YOY.
This trend underscores the region’s focus on attracting high-end travellers. “The emphasis on luxury aligns with the Middle East’s vision of positioning itself as a premier global destination for affluent tourists,” the report stated.
Among countries, Saudi Arabia leads with a remarkable 15% YOY growth in projects and an 18% increase in rooms. The Kingdom’s pipeline now stands at 317 projects and a record 79,984 rooms.
Egypt follows with 109 projects and 26,286 rooms, achieving a notable YOY increase of 20% in projects and 21% in rooms. The UAE, with 86 projects and 23,743 rooms, ranks third despite showing declines of 20% in project count and 13% in room count YOY.
Major cities like Riyadh, Jeddah, and Cairo are leading in construction activity. Riyadh boasts 90 projects and 18,067 rooms, while Jeddah and Cairo follow with 53 projects/11,336 rooms and 40 projects/8,905 rooms, respectively. Cairo’s growth is particularly significant, with a 21% YOY rise in projects and 16% in rooms.
Hotel openings in the Middle East also reflect the region’s dynamic market. A total of 51 new hotels, encompassing 9,356 rooms, opened by the end of Q3 2024. Projections for Q4 suggest an additional 35 new hotels and 6,916 rooms will open by year-end.
Forecasts for 2025 indicate 107 new hotels with 27,485 rooms, followed by 121 new hotels and 25,030 rooms in 2026. “The outlook is vibrant, with pipeline expansions and openings aligning with broader tourism strategies across the region,” the report concluded.
This continued upward trajectory signals a bright future for the Middle East’s hotel industry, solidifying its reputation as a global hub for hospitality innovation.
“Middle East hotel openings surge in 2024” was originally created and published by Hotel Management Network, a GlobalData owned brand.
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