2025 HVS Middle East & Africa Hotel Valuation Index
HVS index tracks hotel values across 23 markets in 16 countries, with Riyadh leading at +100% growth since 2019, driven by tourism strategies and infrastructure investment.
https://hvi.hvs.com/
Dear Partners,
The 2025 HVS Middle East & Africa Hotel Valuation Index (HVI) offers a clear view of how hotel values across the region have shifted since 2019 - and what those movements signal for investors. Covering 23 markets across 16 countries, the index reflects the performance of a typical upscale/upper-upscale hotel and shows where demand, policy and capital are translating into measurable value.
Middle East: A More Disciplined, More Investable Market
Most Middle Eastern markets continue their upward climb, supported by strong tourism strategies, expanding connectivity and sustained rate growth.
- Riyadh +100% - driven by transformational development, improved access and a year-round events pipeline
- Dubai +24% / Abu Dhabi +24% - consistent performance anchored by international demand and corporate activity
- Doha +55% - supported by air capacity growth and MICE-led demand
- Makkah +32% - underpinned by long-term religious tourism and large-scale infrastructure
A handful of markets remain subdued, shaped more by structural constraints than lack of future potential.
Africa: Selective but Strong Growth Where Demand Is Diversified
Value growth continues to concentrate in destinations with a balanced mix of leisure, corporate and domestic demand.
- Dar es Salaam +57%, Accra +39%, Zanzibar +36%, Cape Town +49% - strong, rate-driven value uplift
- Nairobi +15% / Lagos +14% - steady progress supported by controlled supply
- Other markets show mixed performance due to economic pressure, oversupply or uneven recovery
Africa's development pipeline remains large, though delivery is inconsistent — creating opportunities for repositioning, recapitalisation and strategic new development.
What This Means for Investors
Several themes cut across both regions:
- Value continues to concentrate in markets with genuine demand fundamentals
- Mid-scale, mixed-use and branded residential models are gaining traction
- Government-led tourism strategies are shaping long-term value
- The shift from developer-driven to performance-driven investment is accelerating
- Disciplined underwriting and active asset management are now essential
Across MEA, the message is consistent: returns favour investors who read demand accurately, manage risk well and build for long-term value rather than short-term volume.
Access the Full Findings
The HVI is more than a benchmark - it's a decision-making tool. It highlights where capital is moving, where risk is shifting and where the strongest long-term opportunities exist.
If you would like a deeper briefing, a market-specific discussion or support aligning these insights to your investment strategy, my team and I would be pleased to engage.
Media Contact
Hala Matar Choufany
President for HVS Middle East, Africa & South Asia and Managing Partner of HVS Dubai [email protected]