More than 6,400 rooms are in Riyadh’s hotel construction pipeline making it the Middle East’s biggest market for potential growth, new data has showed.
According to STR Global, the Saudi capital’s hotel sector could grow by 84.5 percent if all 6.413 rooms in the pipeline open.
The August 2012 STR Global Construction Pipeline Report also showed that the Middle East/Africa pipeline currently comprises 487 hotels totalling 122,954 rooms.
It said Jeddah’s hotel market is also set for major expansion of 70.7 percent with 4,225 rooms expected to open.
STR Global’s figures also showed that Muscat was poised for 60.9 percent growth if all 2,634 rooms open.
In Abu Dhabi, the hotel building boom is set to continue, adding more pressure of rates and occupancy.
According to STR Global, the hotel sector in the UAE capital is set to see 50.7 percent with 9,114 rooms in the pipeline.
Dubai is also forecast to see double digit growth (28.6 percent) with 17,409 rooms in the construction pipeline.
In July, research by Ventures ME said the value of hotel and hospitality construction contracts will witness enormous growth throughout 2012 to reach $7.3bn.
This growth is a direct result of the increased demand for hotel space in the GCC where room revenues are set to reach $22bn in 2012 and expected to increase to $27bn by 2015, the research said.