Hotel projects slow amid economic crisis - report

The number of planned hotel developments in the Middle East fell in the first quarter amid the global financial crisis, according to a new report.

The Lodging Econometrics report said 32 hotel projects in the region, representing 8,178 rooms, were cancelled or postponed in the first quarter.

Nine projects were cancelled in Dubai, six of which were already under construction while 34 percent of all hotel development in the region was in Dubai, reported UAE daily The National on Sunday.

The number of hotel projects in the Middle East fell 14 percent to 477 from a peak in the second quarter of last year. The number of rooms fell 13 per cent to 142,702 rooms, the paper reported.

“The global economic crisis, which has affected credit availability and caused decreases in consumer and business travel resulting in occupancy and room rate declines throughout EMEA [Europe, the Middle East and Africa], is also having a serious impact on lodging development,” the report said.

But as more than half of the planned projects in the Middle East are under construction, new hotel openings are expected to accelerate until 2011, as these projects come on line, according to the report.

The region is expected to see 99 new hotels or 25,829 rooms this year and 110 or 31,725 rooms next year, with the majority in Dubai and Abu Dhabi.

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