Investor interest for hotel sector in Middle East and Africa remains strong
JLL’s Hotels & Hospitality Group has released its 2015 Middle East Hotel Intelligence Reports for the key markets of Dubai, Abu Dhabi, Doha, Jeddah and Riyadh.
Amid strong international appetite for hotel assets in the Unites States, Western Europe and Asia Pacific, the Middle East and Africa region continues to witness solid hotel development activity and destination building. The UAE is expected to retain its status as the region’s main tourist hub with active and differentiated strategies being implemented in other countries in the region such as Saudi Arabia, Oman and Qatar. Hotel assets continue to be favoured by sophisticated investors and require the right level of professional expertise whether internal or third party provided.
The trend of Dubai being seen as a global business and leisure destination should continue in coming years, backed by the government’s pro-tourism initiatives.
Doha is able to yield high average room rates for the region; however they have been under pressure and decreasing since 2008. This pressure will be compounded further by the 15,400 new rooms in the pipeline which represent a doubling of total stock in the coming years. Development of leisure tourism will remain critical to the long term tourism growth in Doha particularly beyond the 2022 FIFA World Cup event.