Mid-range hotels offer massive opportunities in the Gulf region

In light of the forthcoming Arabian Hotel Investment Conference (AHIC), industry reports state that the upmarket hotel segment has traditionally dominated the Middle East hotel landscape.

This is fast changing with mid-range hotels which are reshaping the hospitality industry in the region.

“There has been a growing diversification of the hotel industry, largely due to growing demand from price conscious tourists and business travellers,” said Mark Shea, Faithful+Gould’s head of hospitality in the Middle East.

Refurbishments and conversions will also be a key focus of AHIC. According to Shea, medical and religious tourism are also fuelling growth of the mid-market range, which ‘could provide profitable long-term investment’.

In Dubai, Department of Tourism and Commerce Marketing (DTCM) estimates that a total hotel room supply of 140,000 to 160,000 rooms will be required by 2020, an increase from the current supply of approximately 90,000 rooms, with a further 10,000-plus rooms that require refurbishment prior to World Expo 2020.

In Qatar, experts estimate about 45,000 hotel rooms are required to meet FIFA 2022 World Cup capacity requirements, with 21 hotels planned for construction by 2017.

“Each city has its own supply and demand characteristics. Dubai is a mature tourism destination, whereas Doha is emerging. However both markets have room for mid-range provision,” added Shea.

sourced:traveldailymedia.com