The GCC and North Africa has $90 billion worth of hotels and resorts in the pipeline, that will add nearly 200,000 rooms, thus boosting the region’s existing supply by 27 per cent, said leading industry experts at the ongoing Future Hospitality Summit – FHS World in Dubai.
With around 88,000 rooms currently under construction and another 25,000 in the final planning stages, over 55 per cent of upcoming hotels in the region are set to be delivered between now and 2030, they stated citing research from global hospitality consultancy HVS.
As per HVS data, Saudi Arabia is the dominant force in the Middle East’s hotel expansion, with 110,000 rooms – around 50 per cent of the regional pipeline – under development in Riyadh, Makkah, Madinah, Diriyah, NEOM, the Red Sea and Amaala.
The scale of development is unprecedented, but equally significant is the increasing diversification of products, from large pilgrimage-focused hotels to luxury resorts, branded residences and upper midscale accommodation, said the experts at the event.
FHS World 2026 is being held at Madinat Jumeirah (September 29 and October 1) under the theme ‘Reinvest in our Future,’ stated the organisers.
According to the report, Egypt comes next at second spot with 42,000 rooms in the pipeline, with projects in Cairo, the North Coast, the Red Sea and emerging mixed-use destinations.
Third is the UAE which, as a comparatively mature market, continues to evolve through destination-led developments, particularly in Dubai, Abu Dhabi and Ras Al Khaimah, where projects such as Wynn Al Marjan Island are further expanding the country’s international appeal, it added.
Hala Matar Choufany, President, Middle East, Africa and South Asia at HVS, said: “The hotel development pipeline across the GCC and North Africa remains one of the most significant globally, reflecting continued investor confidence in the long-term fundamentals of the region’s tourism and hospitality sectors.”
HVS insight shows that capital is being deployed with greater discipline than before, increasingly favouring mixed-use developments, branded residences and phased delivery models that improve project economics and manage risk more effectively.
The 200,000 new rooms will be delivered in phases. Around 44 per cent are currently being built, with much of the remaining supply to be handed over in stages through to 2030 and beyond.