Over the past few months many new hotels have opened within the region and in the UAE. Last year, UAE generated the highest value of cumulative hospitality related contracts followed by Saudi Arabia.
One of the highlights in the agenda of Arabian Travel Market this year is the special gathering of experts to discuss, “Middle East as a financial hub for future worldwide tourism investment” hosted jointly by ATM and the International Tourism & Investment Conference (ITIC), this year’s summit will be held on Tuesday 10 May 2022, shining a spotlight on access to project finance in the post-Covid era.The summit will be held on Tuesday (10 May 2022), shining a spotlight on access to project finance in the post-COVID-19 era. As per an analysis from BNC Network, hotel contracts worth US$ 4.5 billion may be awarded in key GCC nations during 2022, representing y-o-y growth of 16 per cent.
The UAE generated the highest value of cumulative hospitality-related contracts in the GCC last year, followed by Saudi Arabia. The total value of UAE and KSA projects accounted for 90 per cent of all hospitality contracts awarded in the region last year, as per a research. Regional level data released by the STR shows that 169,000 pipeline rooms are currently under contract across the ME, the three most active cities being Dubai, Makkah and Doha, respectively. This year’s ITIC-ATM Middle East Summit represents an opportunity for travel and tourism industry experts to explore regional investment opportunities, discover new modes of financing and network with peers.
Danielle Curtis, Exhibition Director, ME, ATM said, “Development in the Middle East is progressing at a rapid pace. Fuelled by initiatives such as Expo 2020 Dubai, FIFA World Cup Qatar 2022 and Saudi Vision 2030, our region is witnessing levels of tourism-related investment, and this trend shows no sign of abating anytime soon. “The ITIC-ATM Middle East Summit is the ideal forum in which to discuss trends, identify opportunities and explore the project financing models that are being employed across our region.”
Although the GCC’s market has been less active than its counterparts, recent sales such as the Address Portfolio (US$500 million in 2019) and Aldar Properties’ acquisition of Rixos Bab Al Bahr ($205 million in 2022) are indicative of future growth, Colliers International analysts noted. They predicted the GCC transactional market will continue to mature as regional tourism markets reach a stabilized phase. The UAE market accounts for a lion’s share of regional hospitality investment, contract values in Saudi Arabia currently, has announced numerous giga projects.