The Q4 2024 Hotel Construction Pipeline Trend Report for the Middle East from Lodging Econometrics (LE) states that at the close of the fourth quarter, the region’s total pipeline stands at 619 projects/155,428 rooms. The region shows continued growth with a 2 per cent year-over-year (YOY) increase in projects and a 6 per cent YOY rise in rooms.
In Q4, 301 projects/80,431 rooms are under construction throughout the Middle East. Projects scheduled to start construction in the next 12 months saw significant growth, up 42 per cent YOY by projects and 61 per cent YOY by rooms, standing at 156 projects/42,552 rooms. Projects in early planning declined to 162 projects/32,445 rooms, down 14 per cent YOY by projects and 10 per cent by rooms.
The luxury segment remains robust, with 179 projects/41,508 rooms, showing a 9 per cent YOY increase in projects and 19 per cent in rooms. Upscale projects stand at 156 projects/44,736 rooms, up 3 per cent YOY by projects and 12 per cent by rooms, and upper upscale projects reached 150 projects with a new record-high room count of 37,873 rooms.
Combined hotel renovations and brand conversions in the Middle East reached a new record high in Q4 2024, with 59 projects and 13,588 rooms.
Countries with the most projects in the construction pipeline are Saudi Arabia, with a record-high room count of 316 projects/83,275 rooms, and Egypt, also achieving record highs with 120 projects/28,652 rooms. The United Arab Emirates follows with 95 projects/25,922 rooms, then Oman with 26 projects/4,683 rooms, and Qatar with 22 projects/4,929 rooms.
The cities with the largest pipelines are Riyadh, with 87 projects/17,584 rooms, followed by Dubai, with 52 projects/14,580 rooms, Jeddah, with 49 projects/10,239 rooms, and Cairo, with 43 projects/10,064 rooms. Makkah follows with 22 projects/16,232 rooms, and Doha contributes 19 projects/4,241 rooms.
The Middle East had 70 new hotels/13,832 rooms open in 2024. Looking ahead, the LE forecast for new hotel openings shows 107 new hotels/26,261 rooms expected to open in 2025, and 124 new hotels/23,931 rooms are forecast to open in 2026.
