Construction of new hotels picks up in Middle East

Mohamed Dabo

Thu, May 15, 2025, 5:25 PM 3 min read

The edifice operation pipeline successful the Middle East expanded successful the archetypal 4th of 2025, reaching 634 projects and 158,656 rooms, according to the latest information from Lodging Econometrics.

This marks a year-on-year summation of 4% successful projects and 10% successful rooms, reflecting continued momentum successful the region’s hospitality development.

Of the full pipeline, 327 projects comprising 84,434 rooms are presently nether construction—an 8% emergence successful projects and 5% successful rooms compared with Q1 2024.

A further 158 projects with 47,201 rooms are scheduled to interruption crushed successful the adjacent 12 months, a important year-on-year summation of 19% successful projects and 55% successful rooms. The aboriginal readying signifier accounts for 149 projects and 27,021 rooms.

New edifice improvement enactment remains robust, with 41 projects representing 9,068 rooms recently announced during the quarter.

Construction besides began connected 39 projects with 6,910 rooms—up 63% and 21%, respectively, from the aforesaid play past year.

The luxury and precocious upscale edifice segments saw grounds maturation successful the region’s pipeline. Luxury edifice operation deed an all-time precocious with 185 projects and 42,268 rooms, portion the precocious upscale conception reached 153 projects and 37,946 rooms.

These 2 categories present relationship for much than fractional of each pipeline projects and rooms successful the Middle East.

Conversions from different spot types besides acceptable a caller record, with 55 projects and 12,436 rooms undergoing marque translation into edifice operations.

Saudi Arabia continues to predominate edifice operation successful the Middle East, with 319 projects and a grounds 85,416 rooms successful the pipeline. Egypt follows with 125 projects and 28,768 rooms—both figures besides representing caller highs.

The United Arab Emirates holds 102 projects and 27,279 rooms, followed by Oman and Qatar with 27 and 20 projects, respectively.

On a metropolis level, Riyadh leads with 87 projects and 17,519 rooms, followed by Dubai (56 projects/15,073 rooms), Jeddah (50/10,386), Cairo (45/10,218), and Makkah (24/17,386).

Together, these 5 cities relationship for 94% of each projects and 95% of full rooms nether improvement successful the region.

The archetypal 4th of 2025 saw the opening of 9 caller hotels, adding 2,130 rooms.

Lodging Econometrics forecasts an further 99 edifice openings with 23,505 rooms by the extremity of the year, bringing the full-year full to 108 hotels and 25,635 rooms.

Looking up to 2026, a further 109 edifice openings are expected, contributing 20,806 rooms crossed the Middle East.