Hotel sector across the Gulf region is set to see huge growth in construction activity, new figures released by STR Global revealed. The Middle East/Africa hotel development pipeline comprises 495 hotels totaling 125,481 rooms, according to the July 2012 STR Global Construction Pipeline Report.
Among the countries in the region, Oman reported the largest expected room growth (+81.2 percent) if all 5,417 rooms in the country's total active pipeline open.
Saudi Arabia's hotel market is set to grow by 53.9 percent with 27,624 rooms expected to open while Qatar is expected to see 47.1 percent with 6,785 rooms. Qatar is embarking on a major tourism spending spree as it looks ahead to hosting the 2022 World Cup tournament which will bring in thousands of visitors from all over the world.
The STR Global data also said that the UAE's tourism sector would grow by 38.6 percent with 35,052 rooms included in its active construction pipeline.
Algeria expects 43.6 percent growth with 1,875 rooms, the report added.
Last month, research by Ventures ME said the value of hotel and hospitality construction contracts will witness enormous growth throughout 2012 to reach $7.3 billion.
The growth is a direct result of the increased demand for hotel space in the GCC where room revenues are set to reach $22 billion in 2012 and expected to increase to $27 billion by 2015.
The Middle East/Africa region reported mostly positive performance results in June 2012 when reported in US dollars, according to data compiled by STR Global.
The region's occupancy increased 8.7 percent to 58.2 percent during the month, its average daily rate fell 1.8 percent to $136.16 and its revenue per available room rose 6.8 percent to $79.22.
Year-to-date 2012, the region reported a 9.4-percent occupancy increase to 60.6 percent, a 1.5-percent ADR decrease to $162.37, and a 7.7-percent rise in RevPAR to $98.38.
"Middle Eastern hoteliers reported improving occupancy and average room rates boosted by double-digit demand growth for the first half of 2012 compared to the first six months in 2011", said Elizabeth Randall, managing director of STR Global.
"The occupancy and average room rate for the first half of 2012 is, however, still behind its peak performance of the first six months in 2008. For the first six months of 2008, the region achieved 70.9 percent occupancy and rate of $235.64. The region saw the highest increase in new room supply compared to the other world regions since 2008. Africa reported continued occupancy improvements whilst average room rates remain under pressure compared to the first half 2011. In contrast, looking back at the first half of 2008, the Africa region surpassed its average room rate performance by $12.68".
In June, Muscat, Oman, rose 34.1 percent in occupancy to 51.6 percent, posting the largest increase in that metric, followed by Amman, Jordan, with a 15.0-percent increase to 67.8 percent.
Doha ended the month with the largest occupancy decrease, falling 11.8 percent to 49.4 percent.
Dubai achieved the largest ADR increase, rising 9.8 percent to $170.07, followed by Amman with an 8.2-percent increase to $155.51.
Cape Town, South Africa, fell 15.6 percent in ADR to $102.93, posting the largest decrease in that metric, followed by Muscat with a 13.3-percent decrease to $152.90.
Four markets experienced RevPAR increases of more than 15 percent: Amman (+24.4 percent to $105.43); Jeddah, Saudi Arabia (18.2 percent to $195.70); Dubai (+18.0 percent to $125.25); and Muscat (+16.3 percent to $78.87).
Abu Dhabi fell 15.4 percent in RevPAR to $66.13, reporting the largest decrease in that metric.
The Saudi Gazette
21 August
