Each week, Hotel News Now features a news roundup from a different global region. Today’s compilation focuses on the Middle East/Africa region.
February MEA pipeline
The Middle East/Africa hotel development pipeline comprises 504 hotels totaling 122,631 rooms, according to the February 2014 STR Global Construction Pipeline Report. STR Global is a sister company of HNN.
Among the countries in the region, Saudi Arabia reported the most rooms under construction with 17,135 rooms. Four other countries ended the month with more than 2,500 rooms under construction: United Arab Emirates (16,627 rooms); Qatar (5,633 rooms); Jordan (3,231 rooms); and Egypt (2,966 rooms).
February preliminary data for Dubai
STR Global’s preliminary February data for Dubai indicates positive revenue-per-available-room growth.
Based on preliminary daily data, the emirate reported:
- increases in supply (+6.3%) and demand (+7.1%);
- a 0.7% increase in occupancy to 88.6%;
- a 10.7% increase in average daily rate to 1,102.78 dirham ($300.24);
- an 11.5% rise in RevPAR to 977.12 dirham ($266.03); and
- a 3.8% increase in RevPAR is expected in 2014.
Saudi Arabia investment increases
Data from the World Trade and Tourism Council shows travel and tourism investments in Saudi Arabia are expected to increase at an annual rate of 6.7% and to reach 33.5 billion Saudi Arabian riyal ($8.93 billion) in 2020.
Dubai renovation projects to increase
Dubai is expected to see a ramp up in the number of renovation projects leading to Expo 2020, according to a Hotelier Middle East report. Upward of 10,000 rooms in Dubai will need to be refurbished prior to 2020, according to Tom Hasker, Faithful+Gould’s country director for the United Arab Emirates and head of project management. He said his company is working on 13 hospitality-related renovations.
“We anticipate a very busy sector over the next six years,” he said.
Luxury tourism booming in Cape Town
Cape Town, South Africa, has the potential to double its tourism industry during the next five years, according to a report in the Mail & Guardian.
Tourism in Cape Town generates more than 15 billion rand ($1.4 billion) a year and employs about 150,000 people, said Alan Winde, the Western Cape Province minister of finance, economic development and tourism. The industry accounts for 10% of the regional economy, more than agriculture and textiles, he said.
Deals and development
- Steigenberger Hotels & Resorts intends to open its 150-room InterCityHotel Culture Village in Dubai by November 2016.
- Hilton Worldwide Holdings has signed an agreement with Al Jazeera Group to manage the 180-room Hilton Al Ahsa in eastern Saudi Arabia. Hilton will also manage the 455-room Hilton Doha The Pearl Residences, Qatar for First Qatar Real Estate Development Company.
- Accor has opened the 209-room Sofitel Abidjan Hôtel Ivoire in the Ivory Coast, the country’s first branded hotel in the Ivory Coast.
- Warwick International Hotels will manage the 250-room Warwick Doha Hotel in Qatar, which is expected to open by the end of 2017.
- The 128-room Westin Cairo Golf Resort & Spa Katameya Dunes is expected to open in early 2015 in Egypt.
- Accor has partnered with Fujairah National Group to open the 72-room Adagio, 180-room Ibis and 182-room Novotel Fujairah in Fujairah, United Arab Emirates, according to Hotelier Middle East.
Compiled by Shawn A. Turner.