Middle East | Projects presently under construction are at 360 projects/115,222 room > Pipeline at highs!
Projects presently under construction are at 360 projects/115,222 rooms and are at a record high. Projects scheduled to start construction in the next 12 months are at 138 projects/35,299 rooms, and projects in the early planning stage are at 119 projects/29,576 rooms.
Analysts at Lodging Econometrics (LE) report that in the third quarter of 2018 the hotel construction pipeline in the Middle East has set another cyclical high with the total pipeline standing at 617 projects/180,097 rooms. The new pipeline project counts are up 8% while room counts show a 15% increase year-over-year (YOY) when the pipeline stood at 572 projects/156,420 rooms.
The pipeline has grown for five consecutive years off of the 2013 lows and has surpassed the development surge of 2007-08 led by Dubai and Abu Dhabi which awakened hotel development in the region. However, growth trends may be starting to slow as construction starts and new projects announced into the pipeline have been declining throughout 2018.