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Middle East Hotel Construction Projects See 8%YoY Increase in Q1 2025 – Image Credit Unsplash
The Q1 2025 Hotel Building And Construction Pipeline Pattern Report from Accommodations Econometrics reveals an 8% year-on-year increase in Middle Eastern hotel construction projects, with 634 tasks encompassing 158,656 spaces.
Secret Findings
At the close of Q1 2025, projects under building and construction were 327, accounting for 84,434 spaces, marking an 8% increase by tasks and 5% by spaces, year-over-year. Projects arranged for initiation within the next 12 months numbered 158, with an overall of 47,201 rooms, representing a 19% boost in jobs and a 55% boost in rooms, year-over-year.
New projects revealed at the close of the first quarter included 41 projects and 9,068 rooms, while new building starts stood at 39 projects or 6,910 spaces, up 63% by jobs and 21% by spaces, year-over-year.
Record Highs in Luxury and Upscale Sectors
The high-end chain scale reached record highs in Q1 2025, boasting 185 tasks and 42,268 rooms, while the upper upscale chain scale also reached record highs with 153 jobs and 37,946 rooms. These 2 sectors combined account for over half of all tasks and spaces in the region’s pipeline. Brand conversions likewise reached record overalls, with 55 tasks and 12,436 rooms.
Leading Countries and Cities
The nations with the most substantial number of tasks were Saudi Arabia, with 319 tasks or 85,416 spaces, and Egypt, with 125 jobs or 28,768 rooms. The United Arab Emirates was next with 102 jobs or 27,279 spaces, followed by Oman and Qatar.
The cities with the largest pipelines were Riyadh, Dubai, Jeddah, Cairo, and Makkah, hosting 94% of the jobs and 95% of the rooms in the region’s overall building and construction pipeline.
Hotel Openings
In the first quarter, 9 new hotels opened in the Middle East, providing an extra 2,130 spaces. By the end of 2025, Lodging Econometrics forecasts 108 brand-new hotels, or 25,635 rooms, will open. By the end of 2026, 109 new hotels or 20,806 spaces are anticipated to open.