By Sam Bridge
New STR data shows Dubai and Makkah will add the most new hotel supply during this year
Dubai and Makkah are forecast to dominate the global hotel construction pipeline in 2020, according to new data supplied by analysts STR.
The UAE and Saudi cities will add the most new supply during this year, said STR, with Dubai planning to open 23,682 rooms, more than 19 percent of its existing supply.
In the holy city of Makkah, 14,595 hotel rooms are forecast to be added by the end of 2020, adding more than a third of the existing supply.
STR said that in the wider Middle East and Africa region, a total of 74,740 hotel rooms are set to open this year, with Jeddah and Riyadh adding more than 3,000 rooms each.
The Saudi push comes as it has made tourism and the opening up of its cultural heritage and pristine Red Sea coastline key components of its 2030 Vision.
Self-styled ‘gigaprojects’ like The Red Sea Project, Amaala, Neom and the Qiddiya entertainment hub are set to transform Saudi Arabia and the region over the next few years.
Globally, Tokyo (11,334 rooms), New York (9,889) and London (6,690) round out the top five markets after Dubai and Makkah.
Last month, it was revealed that more than $23 billion worth of hotel construction contracts are scheduled to be awarded in the Middle East and North Africa by 2023.
The Arabian Hotel Investment Conference (AHIC) 2020 released its third annual AHIC Hotel Investment Forecast, which reveals that the hotel development sector will be most active in Oman, Egypt, the UAE and Saudi Arabia, making these the markets to watch in 2020.
It said Saudi Arabia is the leading future market with just under $9 billion worth of projects planned to be awarded over the next four years, followed by the UAE and Oman.