Hotel construction projects in the region have reached 607 projects with 147,088 rooms at the close of second quarter of 2024.

This is a 2 pc increase in projects year-over-year, while room numbers are up less than 1 pc year-on-year, says ‘Q2 2024 Middle East Hotel Construction Pipeline Trend Report.’

According to the report by the American analytics firm Lodging Econometrics, nearly 300 projects with 80,867 rooms are currently under construction throughout the Middle East.

It says that projects scheduled to start construction in the next 12 months have seen a significant rise, with 145 projects and 34,706 rooms, marking a 42 pc YOY increase in projects and a 45 pc increase in rooms. 

The report says that projects in early planning at the close of the second quarter stand at 162 projects with 31,515 rooms.

According to the analysis, three chain scales dominated the Middle East’s total pipeline in the second quarter, accounting for 77 pc of projects and 79 pc of rooms. 

Luxury chains lead with 162 projects and 36,342 rooms, followed by the upscale chain scale with 158 projects with 42,956 rooms, and the upper upscale chain scale with 148 projects with 36,213 rooms.

The report says that countries with the highest number of projects in the construction pipeline at Q2 include Saudi Arabia, reaching all-time highs of 320 projects and 79,756 rooms. 

Egypt also hit record highs in Q2 with 107 projects and 26,185 rooms. The United Arab Emirates follows with 87 projects and 22,831 rooms, then Oman with 28 projects with 5,009 rooms and Qatar with 27 projects and 6,482 rooms. 

These five countries represent 94 pc of the projects and 95 pc of the rooms in the Middle East’s total pipeline.

According to the LE report, the cities leading in project counts at Q2 are Saudi-capital Riyadh with 89 projects and 17,784 rooms, Jeddah with 58 projects and 12,248 rooms, and the Egyptian capital of Cairo with 39 projects and 8,789 rooms. 

Doha in Qatar follows with 24 projects and 5,794 rooms and then Saudi Arabia’s Makkah with 22 projects and 14,353 rooms.

In the first half of 2024, 35 new hotels with 6,308 rooms opened in the Middle East. 

An additional 66 new hotels with 13,723 rooms are scheduled to open by year-end. 

LE says that the new hotel openings are forecast to increase slightly in 2025 to 102 new hotels with 25,914 rooms, and further in 2026 with 121 new hotels and 24,766 rooms expected to open.