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Mazaya Monthly Real Estate Report -
Week 1 - December 2016
New Hotel Investments
The perceived attractiveness enjoyed
by thehotel industry in the regionhas led
to tangible growth in direct investments
channeled to this sector. As a result,
this has proved to be a major economic
catalyst for diversification plans and
increasing GDP growth in GCC States.
On this score, statistics revealed that
the number of hotel projects currently
under construction in Dubai exceeds
67 and are valued at approximately
AED 65 billion. These projects
are due to be completed by 2020.
High Dividends
The report also highlighted the positive
impact of the hotel industry’s growth
on the economic diversification plans
adopted by the region’s countries,
despite the besetting economic
challenges. In this regard, the report
noted that Saudi Arabia received 19
million tourist flights during 2016, with
the total tourist expenditure reaching
a record of SR 90 billion, which is
equivalent to 3.5% of the KSA’s GDP.
Thenumber of hotelsunder construction in
Qatar is more than 105 – upon completion,
these constructions are expected to
add over 21000 rooms. In Bahrain, five
hotels are now being constructed by
foreign companies at an estimated value
of more than $1 billion. In Saudi Arabia,
there are around 79 hotel projects under
construction that are expected to add
35,000 hotel rooms upon completion.
In Oman, the hospitality industry
investments are valued at $3.3 billion.
The hotel occupancy rates in Dubai during
2016 ranged around 80% - 85 %, thanks
to the increasing number of business and
leisure travelers arriving in the emirate
as well as the constant promotional
activities organised all year round. In
Qatar, the hotel occupancy rates reached
85% during the current year. In Bahrain,
during holiday seasons, the occupancy
rates hit a record of 90%, which is the
same rate achieved by Oman. In Saudi
Arabia, the occupancy rate is around 70%.