New report shows Middle East's hotel construction pipeline set another cyclical high in the third quarter of 2018
The Middle East’s hotel construction pipeline set another cyclical high in the third quarter of 2018, with a total of 617 projects and 180,097 rooms.
According to analysts at Lodging Econometrics (LE), the new pipeline project counts are up 8 percent while room counts show a 15 percent increase year-over-year.
Figures cited by Hotelier Middle East also revealed that AccorHotels is the top company in the Middle East having the largest construction pipeline with 102 projects and 28,079 rooms, a record high for the company.
Marriott International follows with 95 projects and 21,083 rooms, and Hilton Worldwide, also reached record highs in 2018, with 90 projects and 25,888 rooms.
The leading pipeline brands, according to LE, for these companies are AccorHotels’ Ibis brands with 18 projects and 5,861 rooms, and Novotel, with 16 projects and 5,204 rooms while Marriott’s Courtyard with 21 projects and 4,476 rooms and Residence Inn with 16 projects and 1,877 rooms both recorded their highest pipeline counts.
Hilton’s full-service Hilton Hotel & Resort posted 26 projects and 9,280 rooms, and DoubleTree by Hilton posted 25 projects and 5,873 rooms, according to the figures.
The Middle East at 291 rooms per construction project has the largest average project size in the pipeline of any region in the world, LE added.
The findings also revealed that the pipeline has grown for five consecutive years off of the 2013 lows and has surpassed the development surge of 2007-08 led by Dubai and Abu Dhabi which awakened hotel development in the region.
However, growth trends may be starting to slow as construction starts and new projects announced into the pipeline have been declining throughout 2018.
According to LE, countries with the greatest number of projects in the construction pipeline are the UAE with 223 projects and 63,734 rooms and Saudi Arabia, at a record high, with 214 projects and 76,324 rooms.
The city with the largest hotel construction pipelines is Riyadh with 61 projects and 11,574 rooms.