Saudi Arabia and the UAE are leading a construction boom in the Middle East for hotel rooms under contract, according to new data from STR Global.
The Middle East overall is the fastest growing region in the world, with 99,199 rooms under contract in the region. Existing room supply is expected to grow by 40 percent, it said.
According to the latest figures, the UAE and Saudi Arabia combined make up 68 percent of the existing room supply in the Middle East, where STR Global tracks 13 countries.
The two countries also account for 70 percent of rooms in the region’s pipeline, it reported.
Despite the 12-month moving average supply growth rate of the UAE (up 8.2 percent), Saudi Arabia has a stronger pipeline in terms of rooms under contract, STR Global said.
The amount of rooms under contract in Saudi Arabia (35,587 rooms) is slightly more than the total in the UAE (34,226 rooms). This would lead to a 60 percent supply growth in Saudi Arabia and a 32 percent supply growth in the UAE.
In Saudi Arabia, the Upscale and Upper Midscale hotels lead with the most rooms under contract, while the Luxury and Upper Upscale hotels top the most rooms under contract in the UAE, the data showed.