Dubai had largest number of rooms under construction in June

Dubai: Dubai reported the largest number of hotel rooms in the in-construction phase in June this year, according to the latest report by STR Global.

The hotels data provider’s Global Construction Pipeline Report for June 2012 revealed that Dubai currently has 11,307 rooms under construction.

The report further revealed that out of the 506 hotels totalling 129,077 rooms in the Middle East & Africa pipeline, Abu Dhabi hotel rooms pipeline was almost half of those recorded in Dubai. The hotels there reported having a total of 5,658 rooms in construction in June.

Three other markets in the region ended the month with more than 1,000 rooms under construction including Riyadh with 4,474 rooms, Cairo with 2,209 rooms, and Amman with 1,719 rooms.

Dubai hotels reported a strong performance last year, with the total number of guest nights rising to 32.8 million, according to Dubai Department of Commerce and Tourism Marketing (DTCM) data, which also revealed that the hotels in the emirate reported a 23 per cent year-on-year increase, while total revenues jumped 20 per cent to Dh16 billion in 2011.

Dubai’s hotel count at the end of the first quarter of 2012, meanwhile, rested at 577, with the total number of hotel apartments at 75,171, as per the DTCM statistics.

And the emirate is expected to add approximately another 4,000 branded hotel rooms this year, according to Ernst & Young’s (E&Y) estimates. “Compared to 2011, which saw very muted hotel development, this number is expected to be much higher reflecting the continued growth in the city,” Yousef Wahbah, MENA head of Transaction Real Estate at E&Y, had recently told Gulf News.

According to Elizabeth Randall, Managing Director, STR Global, there was an adequate demand for more hotel rooms in the city. “Dubai, should be able to absorb more hotels as the government continues to develop demand generators [like the expansion of airport and harbour capacities and focusing on tourism, trade and logistics],” she explained.

According to Randall the demand [in Dubai’s hotels sector] increased by “13.9 per cent in 2010 and 17.1 per cent in 2011”, and the six-year average growth rests at six per cent.

“From 2004-2012, more than 26,500 rooms opened in Dubai with more than 18,000 rooms opening in 2008-2010. Post downturn, in 2010 and 2011, demand outpaced supply; demand increased 13.9 per cent in 2010, with supply growth of 11.6 per cent and in 2011, demand increased 17.1 per cent with a 11.6 per cent supply increase in 2011,” she said.