According to the latest report from STR, the UAE currently has 26,989 new rooms in 93 hotels under construction.
Saudi Arabia reported the most rooms under construction among the countries in the Middle East and Africa, with 35,770 rooms in 81 hotels. Other countries with more than 5,000 rooms under construction include Qatar with 7,125 rooms in 30 hotels and Egypt with 6,095 rooms in 18 hotels.
STR’s June 2016 Pipeline Report shows 154,576 rooms in 550 hotels under contract in the Middle East and 55,736 rooms in 289 hotels under contract in Africa.
The under contract total in the Middle East subcontinent in June represents a 23.5% increase in rooms compared with June 2015 and a 14.1% year-over-year increase in rooms under construction. The Middle East reported 81,951 rooms in 256 hotels under construction for the month.
The under contract total in Africa represents a 29.1% increase in rooms compared with June 2015 and a 31.5% year-over-year increase in rooms under construction. Africa reported 30,703 rooms in 157 hotels under construction for the month.
Over the next three years, Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism) expects occupied room nights in hotels and hotel apartments to reach 36.9 million, representing an 11-12% compound annual growth rate (CAGR) to 2018 end. As such, the overall room supply is expected to reflect similar growth, reaching 138,000 rooms by the end of 2018, Dubai Tourism said in a statement.
With demand increasing, overall projected occupancy rates until 2018 are expected to be around 77% despite growth in capacity, ensuring Dubai remains a highly competitive visitation draw. In the first quarter of 2016, Dubai’s hotels saw some of the highest global rates in occupancy, RevPar and average daily rates at 85%, Dh520 and Dh609, respectively.