27, 2007 - Lodging Econometrics of Portsmouth, NH, U.S.A.,
has come out with its forecast for new hotel openings
for 2007, 2008, 2009 and beyond for the Middle East.
The research includes all 12 of the region's countries
markets and revealed the following:
304 hotel construction projects are being actively
pursued by developer groups in the region, having
53% or 161 projects are presently under construction.
73 projects are scheduled to start construction in
the next 12 months.
70 projects are in various stages of early planning.
Projects average 329 rooms in size.
countries in the Gulf are moving quickly to diversify
their economies. Flush with oil and gas revenues and
bolstered with budget surpluses, the fast growing emirates
of Dubai and Qatar are developing new business and financial
centers. Most are focusing on tourism.
Dhabi hopes to become a cultural destination for the
region, while Dubai hopes to become the world's leading
international tourist destination for celebrities and
other luxury travelers. "These economies are thriving
and the hotels are booming. Room rates and Rev Pars
are surging," according to the Lodging Econometric
Hotel Openings Will Mostly be Four and Five Star
hotel openings in the Middle East look to be evenly
spread over the next few years: 78 hotels in 2007; 90
in 2008 and 146 in 2009.
Of the 304 projects in the pipeline, 228 having 81,730
rooms, or 82% will be 4- and 5-star hotels. Most will
be iconic, world-class structures designed by some of
the world's most famous "starchitects."
few are specifically designed to set new 6-, even 7-star
standards of luxury; like Kempinski's Emirates Palace
Hotel that recently opened in Abu Dhabi and Jumeirah's
Burj al Arab which opened earlier in Dubai.
- A New Xanadu-is the Region's Leader
a powerhouse in the Middle East, is an emirate in a
hurry. Committed to becoming the magnet capital provider
for the region, it has taken extensive steps to liberalize
its economy and to provide business incentives, to attract
industry, logistic companies, media, technology, healthcare
and financial service businesses to headquarter in Dubai
and serve as potential capital users. Dubai has neither
corporate nor personal income taxes.
Dubai is committed to become the newest, most opulent
resort destination in the world.
business centers, and office towers and a Manhattan
style skyline will establish Dubai as the financial
center of the Middle East.
their existing inventory of palatial hotels, their development
pipeline for more iconic hotel projects, their lavish
ideas for the four man-made mega island developments
and a wide variety of extravagant tourist attractions
and colossal retail malls that will establish Dubai
as the most exciting resort destination anywhere.
has also been noted for its early embrace of the condo
hotel concept. Many of the new hospitality properties
being developed are condo hotels, with hundreds of investors
from all over the world investing in owning the individual
has 101 of the 304 projects in the Middle East pipeline.
Their 41,771 rooms represent 42% of the pipeline total.
The average project size is an astonishing 414 rooms.
inflows were approximately six million in 2006 according
to the Department of Tourism. The projection for 2010
is for 15 million visitors. Developers and hotel companies
appear up to the challenge.
more development than London, Beijing, Shanghai and
other global hot spots, it's a once-in-a-lifetime opportunity
for regional and international brands like Rotana, Rezidor,
Marriott, Hilton, InterContinental and Starwood to make
opportune decisions for the very long run.
Demand and Supply in Dubai Balance Out in the Long Run?
is like a phoenix rising from the desert hoping for
a long, productive economic cycle.
and private investment
is skyrocketing. Infrastructure investments are extraordinary.
Investment across office, retail, residential homes
and vacation condominiums, tourist attractions and lodging
facilities is broad and deep. Everything seems well
a growth rate greater than China, it's a fascinating
mix of freewheeling capitalism and unlike some countries
in the Middle East, the living is large and the lifestyle
hotel developers, lodging brands and condo hotel investors,
it's an extraordinary opportunity to participate in
the largest and certainly one of the most unique development
activities in the world.
supply side has been well seeded. It's an unprecedented
gamble on luxury development. Everything necessary to
generate the required demand seems on track too.
will take at least four to five years for everything
to blossom and for observers to determine just how well
synchronized the strategic plan really was.