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The UAE’s hotel development pipeline has swelled to 48,000 rooms and is expected to cost around $32 billion to deliver, according to research conducted by global property consultancy Knight Frank.
Faisal Durrani, Head of Research, Knight Frank Middle East, said: “The UAE’s world-leading hotel market will expand by 25% by 2030, adding an additional 48,000 rooms to the country’s 200,000 key portfolio. Perhaps unsurprisingly, Dubai will take the lion’s share of this total, with 76% of new rooms entering the emirate, which already has more than 130,000 rooms. This batch already has more hotel rooms than cities like London or New York.
“The emirate has cemented its position as a city of universal appeal, thanks in large part to the world’s leading government’s response to the pandemic and some of the world’s most visited and incredible attractions. Dubai’s accolades keep coming – Trip Advisor’s most popular destination for 2022, the world’s busiest international airport and the world’s highest hotel occupancy rate, all strongly suggesting that this most important pillar of the economy has more to come Room for growth and expansion”.
Turab Saleem, Head of Travel and Hospitality, Knight Frank, explained: “The UAE’s dynamic hotel market continues to expand with a clear focus on the luxury end of the price spectrum. Our analysis shows that 70% of planned rooms will be 4-star and 5-star star category.
“This comes as Saudi Arabia pushes ahead with what will be one of the most ambitious hotel developments in the world, with plans to build more than 275,000 hotel rooms across the kingdom during 2020 at a total cost of $110 billion. The region is developing A transformed hospitality industry will create a very attractive proposition for global travelers.”
International operators continue to flock to UAE
Knight Frank’s research also shows a growing number of international operators eager to become part of one of the world’s most successful hotel markets.
Durrani added: “The success of the UAE’s hotel market means that international operators are keen to continue to consolidate their businesses. In fact, the ratio of international operators to local operators will rise from 56% today to 60%.
“Interestingly, Hilton hotels overall will have the most room additions, with nearly 5,000 new keys expected to be added by the end of the decade, a 43% increase from today. This reflects the group’s plans in Saudi Arabia, where Hilton hotels will add nearly 5,000 new keys by the end of the decade, a 43% increase from today. Become the second largest operator with 19,000 rooms under management, which is about 3,000 more rooms than the group has in the UAE at this stage.”
Knight Frank estimates that by 2030, Accor will cement its position as the largest operator of hotel rooms in the UAE, managing nearly 25,000 rooms, a position the group also enjoys in Saudi Arabia.
“The three largest cities in the UAE – Dubai, Abu Dhabi and Sharjah – continue to lead the region in terms of hotel performance, but as Vision 2030 unfolds and business and leisure travel unfolds, demand from existing cities in Saudi Arabia will increase The sea change starts to overwhelm the existing supply, which will inevitably translate into higher house prices and ADRs, at least if the number of existing keys is still insufficient to meet future demand,” Saleem noted. – arab trade news agency
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