The UAE and Saudi Arabia lead the region in hotel rooms under contract.The Middle East and Africa has 614 hotels, including 143,870 rooms that are under contract, the report announced.
The UAE leads the region along with 17,137 rooms which are under structure during the month, and then Saudi Arabia along with 15,415 rooms. The UAE and the kingdom account for 68% of the existing room resource in the region and 70% of the hotel rooms in the pipeline.
It was stated that the Middle East has the fastest increasing pipeline in the world with 99,199 rooms under construction. It anticipates existing hotel room supply in the region to escalate by 40%.
The UAE has seen an upsurge in hotel room resource over the last year. Dubai, specifically, added over 3,400 new hotel rooms, within the entire four and five- star hotel divisions, over the past year, according to the head of transaction realty for the Middle East and North Africa.
The increasing hotel room resource has had the result on tenancy rates in Abu Dhabi and Dubai.
Realty consultancy approximates that 850 added hotel rooms will come into the Abu Dhabi market by the end of the year 2014. By the end of 2016, approximately 3,450 rooms are possible to enter the market-the majority of those in the five-star segment- bringing the total supply to 22,300 rooms.