Hotel Industry in the Middle East: Key Developments and Outlook

Strategic Insights -

The hotel industry in the Middle East continues to see significant developments, despite the challenges posed by the global economic downturn. Several major hotel chains and companies have announced plans to open new properties in the region, with a focus on Dubai and other key markets.

Key Takeaways:

  • Ramada Worldwide is set to open two new hotels in the Middle East, including a 299-room property in Kuwait City and a 183-room hotel in Amman, Jordan.
  • Sofitel has launched its first property in the UAE, the Sofitel Dubai Jumeirah Beach, which will feature 438 sea-view rooms.
  • Starwood Hotels & Resorts will open its 1,000th hotel this year and plans to open up to 200 hotels over the next two years worldwide, with 20 hotels in the pipeline in the Middle East.
  • Landmark Group plans to launch a new brand in the budget segment of three-star properties called Citymax Hotels, with two hotels in Dubai and one in Sharjah expected to open by the end of the year.
  • Dubai World is developing the Bubye reserve in Zimbabwe, as part of plans to boost its investments in Africa.
  • Jumeirah Group is experiencing high occupancy levels at its hotels, but has had to offer rate discounts to compete with companies that have slashed their rates.
  • Saudi Arabia is to publish a tourism plan by year end, focusing on enterprise initiatives for small to medium-sized private sector companies and developing various tourist destinations and economic zones.
  • Kuwaiti Touristic Enterprises (TEC) suffered non-operational losses of KD811,700 due to the global economic crisis in 2008.
  • Dubai World and MGM Mirage have agreed to finish building the $8.5bn Las Vegas entertainment complex CityCenter.

Statistics:

  • 299-room Ramada Plaza Kuwait City to open in October 2009
  • 183-room Ramada Hotel and Suites Amman to open in May 2009
  • 438 sea-view rooms at the Sofitel Dubai Jumeirah Beach
  • 1,000th hotel to be opened by Starwood Hotels & Resorts in 2009
  • 200 hotels to be opened by Starwood Hotels & Resorts over the next two years
  • 20 hotels in the pipeline in the Middle East for Starwood Hotels & Resorts
  • SR101bn to be generated by the hotel and tourism sector in Saudi Arabia by 2020
  • 47 million tourists visited Saudi Arabia in 2008
  • 88 million tourists predicted to visit Saudi Arabia by 2020
  • Dhs425m to be spent by Landmark Group on Citymax Hotels
  • KD811,700 in non-operational losses suffered by TEC in 2008
  • $8.5bn budget for the CityCenter complex in Las Vegas

Sources:

  • "Ramada to open two hotels in Middle East" - AME Info, May 4, 2009
  • "Sofitel opens UAE property" - AME Info, May 4, 2009
  • "Starwood to open 1,000th hotel this year" - AME Info, May 4, 2009
  • "Landmark launches hotel division" - AME Info, May 4, 2009
  • "Dubai World to open Zimbabwe reserve" - AME Info, May 4, 2009
  • "Jumeirah Group says hotel occupancy remains high" - AME Info, May 4, 2009
  • "Saudi Arabia to publish tourism plan" - AME Info, May 4, 2009
  • "Kuwaiti Touristic Enterprises suffers losses" - AME Info, May 4, 2009
  • "Dubai World, MGM push casino deal" - The National, May 4, 2009