According to the Arabian Hotel Investment Conference’s (AHIC) third annual AHIC Hotel Investment Forecast, over $23 billion worth of hotel construction contracts are expected to be awarded in the MENA region between now and 2023.
MEED Project’s research revealed that in Q4, 2019, the hotel development sector was most active in Oman, Egypt, the UAE and Saudi Arabia, making these the destinations to watch in 2020.
Director of content and analysis, MEED Projects, Ed James declared: “On the back of the more than 700 new hotels worth in excess of $53 billion having been built over the past seven years, the Middle East is rightly viewed as a high-growth region for tourism. Growing economies, enhanced infrastructure and the opening up of the sector have acted as catalysts for development.
“In terms of the hotel pipeline, Saudi Arabia is the leading future market with just under $9 billion worth of projects planned to be awarded over the next four years. This includes a minimum of 21,500 rooms, across 36 individual hotel, resorts and master-planned tourist destinations,” he added.
Following Saudi is the UAE, which has $7.6 billion worth of hotel construction contracts on in place over the next four years. Meanwhile, Oman has hotel developments worth just over $2 billion in the pipeline and Egypt has some $1.9 billion worth of projects set to be awarded by 2023.
The regional hotel pipeline and the future outlook for hotel investment in the Middle East will be discussed in depth at AHIC 2020, which takes place at Madinat Jumeirah in Dubai from April 14-16.
Chairman, Bench Events, Jonathan Worsley, who is also the founder of AHIC, noted: “The AHIC Hotel Investment Forecast is an incredibly valuable piece of research that clearly demonstrates that the Middle East still has so much to offer when it comes to future hotel expansion and investment. We’re especially excited to see markets such as Oman and Egypt, which offer incredibly rich and diverse tourism landscapes, return to the forefront of development in the region.”
Worsley added: “The ever-evolving hotel management models, brands and products coming to the region will be discussed at AHIC 2020 under the theme, ‘Transform Tomorrow’, which will explore the many different ways hotel owners and operators alike are adapting their businesses to compete in the future.”
This year’s edition of AHIC is set to feature more than 100 high profile speakers and will bring together more than 800 hotel investors, major developers, leading financiers and C-level hotel executives.