• HOTELS
MIDDLE EAST ZOOM-IN
A RECORD PIPELINE DESPITE VOLATILITY 717 Hotel projects in the Middle East pipeline A record high 177,110 Rooms in the regional pipeline 13% y-o-y growth in projects 12% y-o-y growth in rooms 335 Projects currently under construction 84,438 rooms 180 Projects scheduled to start construction Within 12 months 202 Projects in early planning Up 36% y-oy
MIDDLE EAST LEADERS
CITY HOTSPOTS
RIYADH 105 projects, 20,927 rooms
1
SAUDI ARABIA 385 projects, 105,598 rooms Up 21% by projects and 24% by rooms
JEDDAH 63 projects, 14,764 rooms
2
CAIRO 61 projects / 12,192 rooms
3
EGYPT 157 projects, 33,446 rooms A record high
MAKKAH 34 projects, 22,329 rooms
4
MUSCAT 13 projects, 2,149 rooms
5
UAE 105 projects, 25,148 rooms
OMAN 26 projects, 4,451 rooms
3
BAHRAIN 12 projects, 1,900 rooms
1
5
2 4
SEGMENTS TO WATCH 207
The intel Saudi Arabia is the clear regional leader, accounting for well over half of the Middle East hotel pipeline by project count. Egypt is also accelerating, while the UAE remains a major development market with more than 25,000 rooms in the pipeline.
The intel Riyadh leads the Middle East by number of hotel projects, while Makkah’s pipeline is smaller by project count but larger by room count, reflecting the scale of religious tourism accommodation. Jeddah’s pipeline is also expanding quickly, with rooms up 42% year on year.
Luxury hotel projects in the Middle East pipeline A record high 45,076 Luxury rooms in the pipeline 180 Upscale hotel projects (+15% y-o-y) 52,597 rooms (+18% y-o-y)
BRANDED RESIDENCES BOOM
910 Branded residential schemes expected globally by end-2025 +19% y-o-y
187% Growth in MENA branded residences Over five years
64 Completed
87 Branded residence schemes in Dubai’s pipeline
branded residence schemes in Dubai
WHY THE MIDDLE EAST STORY STAYS POSITIVE The Middle East’s hotel market is facing short-term disruption from regional conflict, reduced air connectivity and softer international volumes. But the development story remains underpinned by long-term tourism policy, domestic demand, religious travel, destination building and investor appetite. In Saudi Arabia, JLL says domestic
travel, Ramadan visits to Makkah and Madinah, Eid family travel and new leisure destinations such as The Red Sea and AMAALA are helping sustain tourism activity even as international and corporate demand remains more exposed to geopolitical conditions. In the UAE, JLL notes that hotels responded to weaker occupancy
with temporary closures for accelerated refurbishment, competitive pricing and staycation packages, while government support measures have helped ease short-term pressure on liquidity. STR and Tourism Economics’ latest forecast acknowledges that Middle East markets are seeing the greatest near-term impact from the conflict,
but its long-term outlook does not anticipate lasting damage: Dubai and Abu Dhabi are expected to rebound above long-term average RevPAR growth in 2028-2029, while Riyadh and Jeddah retain long-term growth expectations, supported by recovery, pilgrimage, domestic demand and the positive riplle effects of Expo 2030.
Sources: JLL Global Hotel Investment Outlook 2026; Lodging Econometrics Global, Europe, Asia Pacific, China, Latin America and Middle East Construction Pipeline Trend Reports; CoStar/STR Global Hotel Market Forecast Assumptions Q2 2026; JLL UAE and KSA Hospitality Market Dynamics Q1 2026; Savills Branded Residences 2025/2026; Knight Frank Destination Saudi 20
88 | ATM YEARBOOK 2026
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