Dubai leads Middle East hotel growth
The Middle East and Africa (MEA) region currently has 468 hotels and 127,938 rooms in development, according to the latest STR Global Construction Pipeline Report.The UAE remains the region’s fastest growing hotel market, with 55,629 rooms currently in development. Dubai is still the country’s biggest hospitality market, with 32,516 rooms in development and 16,510 currently under construction.Saudi Arabia remains in a distant second place overall with 15,770 rooms under development. KSA occupancy rates were also down, falling 15.6% during the surveyed period compared to 2009. The UAE’s leading position in terms of hotel growth was also countered by falling occupancy and average daily rates (ADR) - mainly in Abu Dhabi - during the surveyed period.The STR report found that while occupancy rates were up eight percent in Dubai compared to May 2009, rates in Abu Dhabi were down 24.8% to 55.2% while ADR fell 37% to $188.86. Revenue per available room (revPAR) decreased 52.6% to $104.17.The Abu Dhabi result saw the UAE struggle overall, with ADR and revPAR falling more than 14% compared May 2009.Elsewhere, Amman reported the largest occupancy increase during the surveyed period. The Jordanian capital saw occupancy rise 13.9% to 71.1%.