According to the latest Q1 2025 Hotel Construction Pipeline Trend Report by Lodging Econometrics (LE), hotel construction across the Middle East continues to gain momentum. By the end of the first quarter, the region’s hotel development pipeline reached 634 projects totaling 158,656 rooms, reflecting a 4% increase in projects and a 10% increase in rooms year-over-year (YOY).
The number of projects currently under construction rose to 327 projects/84,434 rooms, up 8% in projects and 5% in rooms YOY. Additionally, 158 projects/47,201 rooms are scheduled to break ground within the next 12 months—marking YOY increases of 19% in projects and 55% in rooms. Another 149 projects/27,021 rooms remain in the early planning phase.
The first quarter also saw 41 new project announcements (totaling 9,068 rooms) and 39 new construction starts (6,910 rooms), reflecting strong growth of 63% in projects and 21% in rooms YOY.
Several chain scales reached record highs in Q1 2025. The luxury segment hit an all-time high with 185 projects/42,268 rooms, while the upper-upscale segment also set new records with 153 projects/37,946 rooms. Together, these two upscale segments account for 54% of projects and 55% of rooms in the regional pipeline. Brand conversions also reached a new high, with 55 projects totaling 12,436 rooms.
Among countries, Saudi Arabia leads with 319 projects/85,416 rooms, a record-high room count. It is followed by Egypt (125 projects/28,768 rooms), United Arab Emirates (102 projects/27,279 rooms), Oman (27 projects/4,680 rooms), and Qatar (20 projects/4,476 rooms).
In terms of city-level development, Riyadh tops the list with 87 projects/17,519 rooms, followed by Dubai (56 projects/15,073 rooms), Jeddah (50 projects/10,386 rooms), Cairo (45 projects/10,218 rooms), and Makkah (24 projects/17,386 rooms). Together, these five cities account for 94% of the region’s projects and 95% of the rooms currently in the pipeline.
During Q1, nine new hotels with 2,130 rooms opened across the Middle East. LE forecasts 99 additional hotel openings (23,505 rooms) by year-end, bringing the 2025 total to 108 new hotels/25,635 rooms. Looking ahead to 2026, another 109 hotels with 20,806 rooms are expected to open across the region.
Source: traveldailynews.com
