Middle East hotel pipeline surpasses Africa numbers

Jeddah gained the highest occupancy rates at 8.02 percent and the highest RevPAR at $247 in May 2017.
The Ritz-Carlton, Jeddah, Saudi Arabia

According to the latest stats from STR, 164,497 guestrooms in 574 hotel projects are underway in the Middle East, while 55,349 guestrooms in 299 projects under way in Africa. 

The total number of hotel projects currently underway in the Middle East represents a 3.4-percent increase in guestrooms compared to the numbers from September 2016. Specifically in construction, the Middle East reported 96,694 guestrooms in 302 hotels. Based on number of guestrooms, that is a 15.9-percent increase in year-over-year comparisons. 

The total of hotels underway in Africa represents a 2.7-percent decrease in guestrooms in development, compared with September 2016. Africa reported 27,096 guestrooms in 152 hotels already in construction. Based on number of rooms, that is a 6.6-percent decrease in year-over-year comparisons. 

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These totals are significantly lower than those recorded in August. While the Middle East had 164,898 guestrooms in 538 hotels in development—a 5.5-percent increase in guestrooms since August 2016—while Africa reported it had 57,011 guestrooms in 308 hotels currently underway. This total marked a smaller 0.3-percent increase from the same period last year. 

Together in the Middle East and Africa regions, five countries had over 4,000 guestrooms in construction. Saudi Arabia had the most guestrooms under construction with a total of 40,020 in 89 hotels. Meanwhile, the UAE had 35,050 guestrooms in construction in 121 hotel projects. In Qatar, 9,627 guestrooms in 41 hotel projects were under construction while Angola reported 4,451 guestrooms in 32 hotels under construction, as Egypt followed close behind with 4,169 guestrooms in 12 hotel projects in the construction phase. 

STR's report includes projects in the in construction, final planning and planning stages, but it does not include projects in the unconfirmed stage.