Europe, Middle East & Africa Construction Pipeline Executive Summary
Lodging Forecast Reports
The global economic crisis, which has affected credit availability and caused decreases in consumer and business travel, resulting in occupancy and room rates declines throughout EMEA, is also having a serious impact on lodging development.
At 477 projects/142,702 rooms, the Middle East Total Pipeline has fallen 14% and 13%, respectively, from the Q2 2008 peak. Over 53% of the region’s total Pipeline projects are currently Under Construction. New Hotel Openings are expected to accelerate in 2009, 2010 and into 2011, as these large, iconic projects come online.The Pipeline in Dubai is at 124 projects/48,558 rooms, representing 34% of all guestroom development in the region. Dubai’s average project size is 392 rooms, one of the highest for any country or market worldwide, second only to Las Vegas.
The Total Pipeline in Africa is 174 projects/35,253 rooms, a 3% decline by projects and 4% by rooms from the peak. With 47 projects/9,175 rooms, Morocco makes up 27% of the continent’s Total Pipeline projects, followed by South Africa, 25 projects/4,250 rooms, and Nigeria, with 16 projects/3,939 rooms.