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Knight Frank says UAE hotel rooms to grow 25% by 2030

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As more international tourists continue to flock to the Gulf tourism hub, the UAE plans to add 48,000 hotel rooms by 2030, a 25% increase from its existing supply of 200,000 rooms.

The planned supply of hotel rooms is expected to cost about $32 billion, with a focus on luxury properties, global consultancy Knight Frank said. About 70% of the planned rooms will be in the four- and five-star categories.

“The success of the UAE’s hotel market means that international operators are keen to continue to consolidate their business. In fact, the ratio of international operators to local operators will rise from 56% today to 60%,” Partner and Partner Faisal Durrani, head of Middle East research at Knight Frank.

UAE wants to see a ‘Strong tourism recovery’ this winter, Sheikh Mohammed bin Rashid, the Prime Minister and Ruler of Dubai said earlier this month.The total number of hotel guests in the first half of the UAE 42% increase to 12 million. In the first six months of 2022, tourism revenue exceeded Dh19 billion.

About 76% of new hotel rooms will open in Dubai, which already has more than 130,000 hotel keys. Inventories are already higher than in cities like London or New York.

Factors such as the government’s response to the Covid-19 pandemic, combined with a growing list of attractions and the emirate being named Trip Advisor’s most popular destination for 2022, “strongly points to further growth and expansion of this important pillar. the space. The economy,” said Mr Durrani.

Welcome to Dubai 8.1 million international tourists The first 7 months of 2022.The figure has nearly tripled, government figures show compared to a year agomore than the total of all 2021. The emirate’s tourism industry has recovered significantly from the pandemic, hosting 7.28 million tourists in 2021.

Analysis by Knight Frank shows that a growing number of international hotel operators are looking to become part of the UAE hotel market.

Mr. Durrani said Hilton hotels overall will have the most room additions, with nearly 5,000 new keys expected to be added by the end of the century, a 43 percent increase from today.

Knight Frank estimates that by 2030, Accor will cement its position as the largest operator of hotel rooms in the UAE, with nearly 25,000 rooms under management.

International and local operators such as IHG, Marriott International and Rotana said at the Future of Hotels Summit in Dubai last week that they are Bullish on UAE’s growth prospects. This comes amid increased tourism and the upcoming FIFA World Cup in Qatar in November.

“The three largest cities in the UAE – Dubai, Abu Dhabi and Sharjah – continue to lead the region in terms of hotel performance,” said Turab Saleem, Partner and Head of Travel and Hospitality, Knight Frank, Say.

Saudi Arabia is set to face “a sea change in demand” as business and leisure travel begins to overwhelm existing supply. Mr Salem said this would lead to higher room rates and annual daily rates, while the number of hotel rooms available was still insufficient to meet expected demand.

Saudi Arabia is moving ahead with an ambitious hotel development plan that will see more than 275,000 hotel rooms built in the country over a decade at a total cost of $110 billion, Knight Frank said.

“The region’s transforming hospitality industry will create a very attractive proposition for global travelers,” Mr Salim said.

Updated: September 27, 2022 9:21 am



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