According to the latest data from Lodging Conatemetrics, in the first quarter of 2025, the hotel construction pipeline in the Middle East expanded to 634 projects and 158,656 rooms in the first quarter of 2025.
This marks a 4% year-on-year increase in the project and a 10% increase in rooms, reflecting the continued momentum of hospitality development in the area.
Among the 327 projects with 84,434 rooms currently under construction, the project grew by 8% and the rooms increased by 5% compared to Q1 2024.
Another 158 projects are planning to open 47,201 rooms in the next 12 months, up 19% year-on-year by 55% of the projects and rooms. The early planning phase accounts for 149 projects and 27,021 rooms.
New hotel development activities remain strong, with 41 projects representing the 9,068 newly announced guest rooms this quarter.
39 projects started from the same period last year, with 6,910 rooms, 63% and 21% respectively.
The luxury and upscale hotel sector has set record growth in the region’s pipeline. The luxury hotel building has consistently reached 185 projects and 42,268 rooms, while the premium cap has reached 153 projects and 37,946 rooms.
These two categories now account for more than half of all pipeline projects and rooms in the Middle East.
The conversion from other property types has also set new records, with 55 projects and 12,436 rooms, converting the brand into hotel operations.
Saudi Arabia continues to dominate hotel construction in the Middle East, with 319 projects and a record 85,416 rooms. Egypt then has 125 projects and 28,768 rooms, both numbers represent new highs.
The United Arab Emirates has 102 projects and 27,279 rooms, followed by Oman and Qatar, with 27 and 20 projects respectively.
Riyadh has 87 projects and 17,519 rooms on the urban level, followed by Dubai (56 projects/15,073 rooms), Jeddah (50/10,386), Cairo (45/10,218) and Mecca (24/17,386).
The five cities together account for 94% of all projects and 95% of the total rooms under development in the area.
The first quarter of 2025 saw the opening of nine new hotels, adding 2,130 rooms.
Accommodation econometrics predict that by the end of this year, 23,505 rooms will offer an additional 99 hotels, bringing a total of 108 hotels and 25,635 rooms throughout the year.
Looking ahead to 2026, 109 more hotels are expected to open, resulting in 20,806 rooms throughout the Middle East.
