and owns , develops and manages assets of 3- and 4-star hotels in the Middle East and Australia . Dubai ’ s decision in 2013 to waive a 10 % “ municipality fee ” for developers of 3- and 4-star hotels is helping . Other countries are opening up for other reasons . Saudi Arabia announced plans in June to loosen strict visa requirements to investors , according to news reports . While long-term religious tourism is expected to increase , hotel performance is mixed across that country due to lower oil prices curtailing corporate demand .
Another company seeing opportunity is luxury operator GHM of Singapore , which announced a partnership in August with van de Bunt Partners on a lifestyle brand called Tin Hotels , aimed at millennials and middle-class travelers . The first locations will open in Dubai and Oman . It ’ s aiming for 35 properties by 2022 .
THEME PARKS “ We are in no doubt that Dubai needs more affordable rooms if it is to grow tourist numbers from 13.2 million in 2014 to 20 million by 2020 ,” says Chris Newman , COO of Dubai-based Emaar Hospitality Group , whose Rove Hotels , a joint venture with Meraas Holding , is aimed squarely at that market . He cites research that says 40 % of leisure travelers from the region seek budget hotels . The company ’ s flagship hotel , Rove Downtown Dubai , opened in May . The lobby showcases art that reflects “ the memorabilia of a rover ,” contrasting , say , traditional burqa masks displayed over modern fabric .
A strong play for the middle market , however , might be theme parks . They have “ a huge potential to benefit the economy ,” Newman says . “ There are 3 billion people that live within a fourhour flight of the UAE , and there is a significant gap in this market .” Dubai Parks and Resorts , scheduled to open in October , anticipates 6.7 million ticketed visits in 2017 , Newman says , and a recent report suggested that the leisure and entertainment market potential in the UAE could reach 45 million visitors by 2021 .
The lobby lounge of the Rove Downtown Dubai
MIDDLE EAST PIPELINE Q2 2016 , YEAR OVER YEAR
TOP MARKETS , YOY
Dubai : 110 projects / 31,155 rooms (+ 24 %)
Riyadh , Saudi Arabia : 56 projects / 11,866 rooms (+ 6 %)
Doha , Qatar : 44 projects / 9,554 rooms (+ 19 %)
Jeddah , Saudi Arabia : 42 projects / 9,284 rooms (+ 8 %)
Makkah , Saudi Arabia : 26 projects / 29,296 rooms (+ 13 %)
TOP FRANCHISE COMPANIES
Hilton Worldwide : 75 projects / 22,708 rooms
Starwood Hotels & Resorts : 49 projects / 14,249 rooms
Marriott International : 43 projects / 10,513 rooms
Carlson Hospitality : 32 projects / 7,562 rooms
InterContinental Hotels Group : 27 projects / 7,842 rooms
TOP BRANDS
Hilton Hotel & Resort : 30 projects / 11,452 rooms
Doubletree by Hilton : 21 projects / 5,444 rooms
Radisson Blu by Carlson Hospitality : 14 projects / 3,593 rooms
Rotana by Rotana Hotels Inns & Suites : 10 projects / 3,125 rooms
Aloft by Starwood : 15 projects / 3,180 rooms
CONSTRUCTION BY PROJECT STAGE , YOY
Under construction 282 projects / 88,545 rooms ( 26 %/ 19 %)
Start next 12 months 103 projects / 24,211 rooms ( 8 %/ 7 %)
Early planning 110 projects / 30,190 rooms ( 3 %/ -4%)
Total pipeline 495 projects / 142,946 rooms ( 16 %/ 11 %)
CONSTRUCTION BY COUNTRY , YOY
Saudi Arabia 183 projects / 61,373 rooms ( 14 %/ 9 %)
United Arab Emirates 157 projects / 44,989 rooms ( 20 %/ 14 %)
Qatar 48 projects / 11,181 rooms ( 23 %/ 23 %)
Egypt 30 projects / 8,960 rooms ( 11 %/ 11 %)
Other ME countries 77 projects / 16,443 rooms ( 12 %/ 7 %)
Total 495 projects / 142,946 rooms ( 16 %/ 11 %)
The top five global franchise companies account for 44 % of the region ’ s pipeline rooms .
Source : Lodging Econometrics
October 2016 hotelsmag . com 45