The managing director of STR has called for more midmarket hotels to be built in the Middle East, if the market is going to fully recover in the region.
“There needs to be an affordable mid-market room supply, if you look at the region most of the supply is at the luxury end which is the opposite from the rest of the world,” said managing director, STR Robin Rossmann.
“There needs to be more affordable room stock and the private sector is doing a lot to deal to provide that. People realise there is a market opportunity for mid-market hotels. It is a profitable industry and that’s what encouraged people to invest in hotels.”
Rossmann, who was speaking to Hotel News Middle East at AHIC last month, said the figures surrounding the market in Dubai were impressive, especially compared to this time last year.
“It is not news that 2016 was a tough year but in 2017 we are starting to see a few greenshoots, I don’t think anyone expected to see Dubai only down by 4% RevPar this year so far when last year it was down by 9%,” he said.
“It is still down but supply is growing at 5%. it is doing incredibly well and we are getting more optimistic the market will stablise and recover next year.
He singled out Beirut, for praise, where the market is up by 12%, before adding that Saudi Arabia continues to have a tough year.