Hilton Worldwide is taking part in the big KSA development boom with its Hilton Suites Makkah .
The drill down ▼
Each of the three sub-regions — the six countries of the Gulf Cooperation Council ( GCC ), North Africa and the region consisting of Syria , Jordan , Lebanon and Palestine , known as The Levant — across the Middle East has its own story to tell . From the luxury magnet that is Marrakech to possible overbuilding in markets like Doha , the pipeline takes a lot of localized twists and turns . Here ’ s a look at the landscape .
The GCC
Bahrain , Kuwait , oman , Qatar , Saudi Arabia and the United Arab emirates where ’ S hoT
Dubai remains a safe bet , partly on the strength of Expo 2020 ; Doha and Abu Dhabi are closer to saturation .
By room and project count , Riyadh has the most extensive pipeline with 28 projects and more than 7,000 rooms , according to Lodging Econometrics . Oman is also notable , with Jeddah and Muscat also having large pipelines .
who ’ S hoT
The top five brands
( Hilton Worldwide , Starwood Hotels & Resorts , Marriott International , IHG and Accor ) account for half of all development in the region . However , the GCC is also home to a number of homegrown brands .
Brands like Rotana have cashed in on confidence from local investors . “ Rotana has won the hearts and minds of many Arab developers as an international operator with Arabic owners ,” notes Guy Wilkinson , managing partner , Viability , Dubai . “ Contrast that with the U . S ., British , French or German owners of other chains whose credibility was shaken , at least in some local circles , by 9 / 11 , Bin Laden , the global financial crisis , etc .”
Brands like The Address and JA Resorts & Hotels International are other regional players to watch . whAT ’ S hoT
New trends here vary significantly by city . “ As the international operators are closer to facing territorial saturation on some brands , new brands are coming to Dubai such as the JW Marriott Marquis ,” says Chiheb Ben Mahmoud , executive vice president , head of Hotels & Hospitality Group , Middle East and Africa , Jones Lang LaSalle , Dubai . “ While the Dubai luxury segment was dominated to a large extent by Jumeirah , the city will witness the entry of Four Seasons and St . Regis as well as a number of highly exclusive brands in the next couple of years .”
The buzzword in Doha is “ lifestyle ” with offerings such as Accor ’ s M Gallery brand bringing multi-sector style . Extended-stay is also gathering momentum across the region . “ We opened the region ’ s first Staybridge Suites in Cairo in 2008 , and over the next three to five years we will open six more Staybridge Suites , three of which will be in Saudi Arabia and two in the UAE ,” says Pascal Gauvin , COO for India , the Middle East and Africa , IHG . “ Midscale offerings are expanding their reach as well .”
Wilkinson points out that brands begun in Dubai are starting to be drawn to Saudi Arabia ’ s big cities and appealing secondary and tertiary markets . nUmBerS GAme
The regional pipeline contains 276 projects with 77,972 Rooms . Saudi Arabia has the biggest pipeline by project count with 83 projects and 24,405 guestrooms . The United Arab Emirates also has an extensive pipeline with 42 projects and 12,145 guestrooms in Dubai ; 21 projects and 6,823 guestrooms in Abu Dhabi ; 24 projects and 6,181 guestrooms in Qatar ; and 23 projects with 4,610 guestrooms in Oman . GCC countries continue to dominate the top markets . Riyadh leads with 28 projects and 7,119 guestrooms ; Doha has 23 projects with 5,347 guestrooms ; Makkah has 17 projects and 9,640 guestrooms ; Jeddah has 14 projects with 2,797 guestrooms ; and Muscat has 13 projects with 3,006 guestrooms . The top five hotel companies account for half of the Middle East pipeline . Hilton Worldwide leads with 48 projects / 15,261 guestrooms ; Starwood Hotels & Resorts comes in second with 31 projects / 9,811 guestrooms . Hilton Worldwide has the two top brands in the pipeline ( by project count ). The full-service Hilton Hotels & Resorts brand has 21 projects / 8,264 guestrooms , and DoubleTree Hotels by Hilton has 16 projects / 4,470 guestrooms . Rotana ( nine projects / 3,178 guestrooms ), Radisson Blu ( nine projects / 2,367 guestrooms ) and Hilton Garden Inn ( eight projects / 1,520 guestrooms ) round out the list .
58 HOTELS June 2014 www . hotelsmag . com
Source : Lodging Econometrics