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Dubai / Emirates Business
Total value of 543 active hospitality projects in the UAE reached $71.6 billion (AED262.77 billion) at the beginning of September 2017, according to BNC Network, the largest and most comprehensive project research and intelligence provider in the Middle East and North Africa (MENA) region.
The hospitality sector constitutes 6 percent of all active projects in the UAE’s urban construction sector and in dollar terms these projects account for 14 percent of the total estimated value, as per BNC Construction Intelligence.
Among these, three hospitality projects with a combined estimated value of $194.5 million moved to construction from other stages during August. The largest hospitality project in dollar terms to have moved to construction was Portofino Hotel located in Dubai’s Europe Main Island.
Four hospitality projects with a combined estimated value of AED1.93 billion were completed during August 2017. At the end of Q2 2017, there were 367 active projects in Dubai’s hospitality industry. The total estimated value of these projects is AED160.37 billion.
In Q2 2017, the number of hospitality projects in Dubai increased by 4% as compared to Q1, 2017 and the total estimated value of the projects increased by 7%.
A total of 20 hospitality projects with a combined estimated value of $1.1 billion moved to construction from other stages during Q2 2017. The largest hospitality project in dollar terms to be awarded was Terhab Hotel and Residences located in Jumeirah Village Triangle. Four hospitality projects with a combined estimated value of $108 million were completed during the second quarter in Dubai.
“The hospitality sector is on a roll as the countdown for Expo 2020 is closing in to three years within which all these projects will have to be ready for the massive influx of visitors,†Avin Gidwani, CEO of BNC Network, says. “According to Dubai Government’s stated projections, the emirate will need to add 40,000 hotel rooms in addition to the
existing inventory of slightly more than 100,000 guest rooms and hotel apartments.