Khaleej Times, Tuesday, Sep 27, 2022 | Rabi Al-Awwal 1, 1444
UAE hotel pipeline swells to 48,000 rooms by 2030
Emirates: The UAE's hospitality sector will
continue to gain momentum and add another 48,000 keys by 2030 due to strong
influx of tourists, latest data shows.
Global property consultancy Knight Frank said that in the UAE's hospitality
sector the delivery of the planned hotel room supply is forecast to cost
approximately $32 billion.
“The UAE’s world-leading hospitality market is set to expand by 25 per cent by
2030, with a further 48,000 rooms adding to the nation’s extensive 200,000 key
portfolio," Faisal Durrani, partner and head of Middle East Research, Knight
Frank, said.
Perhaps unsurprisingly, he said Dubai is set to account for the lion’s share of
this total, with 76 per cent of all new rooms coming to the emirate, which
already boasts over 130,000 rooms. This stockpile of hotel rooms is already
higher than cities like London or New York.
“The emirate has cemented its status as a city with universal appeal, in large
part to the world-leading government response to the pandemic and some of the
world’s most visited and incredible attractions. The accolades for Dubai keep
coming – Trip Advisor’s most popular destination for 2022, the world’s busiest
international airport and the highest hotel occupancy in the world, all of which
strongly pointing to room for further growth and expansion of this all-important
pillar in the economy,” Durrani said.
Focus on luxury segment
Turab Saleem, partner and head of Tourism and Hospitality, Knight Frank, said
the UAE’s vibrant hospitality market continues to expand, with a clear focus on
the luxury end of the price spectrum.
"Our analysis shows that 70 per cent of all the rooms planned will fall in the
4* and 5* category. This comes at a time when Saudi Arabia is pushing ahead with
what is set to be one of the world’s most ambitious hospitality development
programmes that will see more than 275,000 hotel rooms built across the kingdom
over the course of the 2020’s at a total cost of $110 billion. The region’s
transforming hospitality sector is set to create a very attractive proposition
for global travellers,” Saleem said.
International operators continue to flock to the Emirates
Knight Frank’s research has also revealed a growing proportion of international
operators who are rushing to be part of one of the world’s most successful
hospitality markets.
“The success of the UAE’s hospitality market means international operators are
keen to continue cementing their presence. Indeed, the proportion of
international operators to local ones is set to rise to 60 per cent from 56 per
cent today," Durrani said.
“Interestingly, Hilton Hotels will add the most rooms overall, with close to
5,000 new keys expected by the end of the decade, a 43 per cent increase on
today. This mirrors the group’s plans in Saudi, where Hilton hotels will emerge
as the second biggest operator by 2030 with 19,000 rooms under management,
around 3,000 rooms more than the group will have in the UAE by that stage,” he
said.
Knight Frank estimates that by 2030, the Accor Group will cement its place as
UAE’s largest hotel room operator, with close to 25,000 rooms under management,
a position the group also enjoys in Saudi Arabia.
“The UAE’s three biggest cities – Dubai, Abu Dhabi and Sharjah, continue to lead
the region in terms of hotel performance, but Saudi Arabia’s existing cities are
poised to experience a sea change in demand as Vision 2030 unfolds and business
as well as leisure travel begins to overwhelm the existing supply, which will
inevitably translate into heighted room rates and ADRs, at least while the
existing number of keys remains inadequate for the demand yet to come,” Saleem
said.