Middle East Hotel Survey Changing Times: But For Better or For Worse?
The HVS Middle East Hotel Survey for 2009 encompasses 140 hotels (a total of 39,500 rooms) and our sample includes branded four-star and five-star hotels but excludes super-luxury hotels,as they could skew the results of this survey. We have chosen to include in our annual survey only those hotels with an operating history of more than three years; this is to avoid the distortion due to the initial years of a hotel operation.
Many questions were raised at the beginning of 2008 about thelikely performance of the Middle Eastern cities. Some experts have suggested that there is likely to be some correction in 2008, and others have remained highly confident that the bubble is far from bursting.
HVS has suggested, correctly, that some cities will witness slower growth than others on account of the rapid increase in the number of developments and the risk of an imbalance between supply and demand. We suggested in last year’s edition of this survey that certain cities would continue to grow as a result of a shortage of new rooms, improved in frastructure, amore dedicated tourism strategy and enhanced political stability.
We take a closer look in this year’s edition at the performance of the key Middle Eastern cities in 2008, analyse the outcome and note the opportunities and threats that lie ahead in the near future, especially in light of the worldwide economic events that are being felt in different degrees by Middle Eastern cities.
We ask the question: ‘How did the markets perform in 2008 and what is the likely performance for 2009?’
Hala Matar Choufany
Director | HVS – Dubai Office
Phone: +971 50 4597930