By Parag Deulgaonkar
GCC hospitality projects valued at $148.4bn, says BNC Intelligence
Developers in the UAE are racing against time to complete 40,000 new hotel rooms ahead of Dubai’s Expo 2020, according to a BNC Network executive.
The emirate will host the Expo event from October 2020 to April 2021, which is expecting to attract 25 million visitors.
“According to the Dubai Tourism and Commerce Marketing, the emirate will need to add 40,000 hotel rooms to the existing hotel inventory of 100,000 hotel rooms and hotel apartments in less than three and a half years, which is more than 13,000 additional rooms per year till the Expo 2020 starts,” Avin Gidwani, CEO, BNC Network, said.
“That’s why major project developers are racing against time to expand the hotel inventory in the emirates as well as introduce new and innovative hospitality concepts in the market,” he added.
Meanwhile, BNC Intelligence said that the total value of 1,153 hospitality projects crossed $148.4bn (AED544.62bn) in the first quarter of 2017.
Sixty-two projects with combined estimated value of over $2.5bn (AED9.1bn) were launched in the first quarter of 2017.
Value and number of projects in GCC’s hospitality sector rose by one percent in March over February,
Seven hospitality projects, valued at $1.1bn (AED4.04bn), were put on hold in the GCC. The largest hospitality project to be put on hold was $600m (AED2.2bn) Business Park and Hotel in Jeddah.
BNC Intelligence said construction started on 12 hospitality projects worth $945m (AED3.46bn) with the largest project being the extension and renovation of Beach Rotana Hotel in Abu Dhabi’s Tourist Club area, worth $215m (AED789m).
Six hospitality projects with a total estimated value of $390.5m (AED1.43bn) were completed In March, Gidwani said.