Dubai: The Middle East saw a 50.4 per cent jump year-over-year in hotel rooms under construction in January 2016, according to a new report by research firm STR Global.
The region had 251 hotels featuring 80,350 rooms under construction and 538 hotels with 151,771 rooms under contract last month, representing a 42.8 per cent growth year-over-year, as per the STR Global Pipeline report.
Meanwhile, in Northern and Southern Africa, there were 28,840 rooms in 156 hotels under construction last month, up 40.5 per cent year-over-year, and 62,194 rooms under contract, an increase of 49.3 per cent compared to January last year.
Among the key markets in the Middle East and Africa, Makkah had the largest number of rooms under construction, with 21,068 rooms in 13 hotels. This was followed by Dubai, with 19,846 rooms in 63 hotels, Riyadh with 6,738 rooms in 30 hotels, and Doha, with 5,980 rooms in 26 hotels.
Alongside Dubai, hotel room supply is also increasing in Abu Dhabi. According to an STR Global report, supply in the UAE capital rose 4 per cent in January 2016. Demand outpaced supply, having grown 5.3 per cent during the same period.
Hotel occupancy in Abu Dhabi increased 1.3 per cent year-over-year last month to 75.5 per cent, while average daily rate dropped 6.6 per cent to Dh519.75, resulting in revenue per available room (RevPAR, an industry measure of occupancy and rates) to decline 5.4 per cent Dh392.44.
“STR Global analysts see lower rate in the market as an indicator of strong and growing occupancy levels. January occupancy was boosted in the beginning of the month by increased vacation travellers from Russia and other Commonwealth of Independent States. Abu Dhabi also hosted the World Future Energy Summit from January 18 to 21,” STR Global said in a statement.
