STR Report: Saudi Arabia Leads Hotel Room Development in the Middle East, Defying Global Trends During COVID-19 Pandemic

According to a recent report by industry analysts STR, Saudi Arabia is leading the Middle East region in terms of hotel room development, despite the global downturn in the hospitality industry due to the COVID-19 pandemic. The report shows that the Kingdom has the highest number of hotel rooms under construction in the region, with 68,000 rooms in the pipeline, followed by the United Arab Emirates (UAE) with 44,000 rooms.

The report also shows that the Middle East is defying the global trend in hotel development, with the region's hotel industry continuing to grow despite the pandemic. The report highlights that the region has been able to maintain its position due to its strong domestic tourism market, which has helped to offset the decline in international tourism caused by travel restrictions and lockdowns.

Saudi Arabia's strong performance is due to its ambitious Vision 2030 plan, which aims to diversify the country's economy and reduce its reliance on oil revenue. The plan includes a focus on developing the country's tourism industry, with the government investing heavily in infrastructure projects and incentives to attract international hotel brands to the country. This has resulted in a surge of hotel development activity, with major hotel chains such as Marriott, Hilton, and Accor all announcing plans to expand their presence in the country.

The UAE, on the other hand, has been impacted by the pandemic, with the country's hospitality industry experiencing a decline in demand due to the absence of international visitors. Despite this, the country remains a key player in the region's hotel industry, with Dubai in particular continuing to attract international hotel chains with its reputation as a leading tourist destination.

The STR report also highlights that hotel operators in the region are adapting to the changing market conditions by focusing on new trends such as health and wellness, sustainability, and the use of technology to enhance the guest experience. This has led to the emergence of new hotel concepts, such as wellness resorts and eco-lodges, as well as the adoption of new technologies, such as contactless check-in and room service.