UAE hotel investments to hit $8.4bn in 2018

DUBAI / Emirates Business

The Arabian Hotel Investment Conference 2018 (AHIC) is forecasting significant opportunities for hotel investors targeting the Middle East in light of new data from MEED Projects, which predicts that more than $14bn worth of hotel construction contracts will be awarded in 2018.
According to MEED Projects, the online projects tracking service, the value of new hotel investments in the MENA region could hit a record high in 2018.
Ed James, Director of Content and Analysis at MEED Projects, said: “After a relatively subdued 2017 up to end of November which has seen $5.45 billion worth of new hotel construction contracts awarded, the value of hotels due to be awarded next year is more than $14 billion. This total would comfortably exceed the $8.5 billion awarded in 2016 and the previous record of $11.9 billion awarded in 2015.”
James added: “On the back of its forecasted performance, investment in hotels will comprise about 7 percent of the total $200 billion sched-
uled projects spending in the MENA region next year, making it one of the most important construction subsectors.
“On a country basis, the UAE will be by far the largest market, with an expected $8.4 billion worth of contracts, followed by Saudi Arabia at $1.9 billion.”
These figures will be discussed at the 14th edition of AHIC, which will be held from April 17-19, 2018 at the purpose-built AHIC Village in the grounds of the Waldorf Astoria Ras Al Khaimah, UAE, in partnership with Ras Al Khaimah Tourism Development Authority (RAKTDA).
Jonathan Worsley, Chairman of Bench Events and Co-Founder of AHIC, said: “These new figures are exciting for
the Middle East hospitality investment community, which gathers annually at AHIC. With the oil prices now trading
significantly higher than the January 2016 lows, we expect to see signs of recovery and stability in most of the regional economies.”