UAE and KSA lead GCC luxury hospitality market

ATM_2018The UAE will continue to lead the GCC’s luxury hospitality segment to 2022, with 73 per cent of existing luxury hotel stock and 61 per cent of the region’s current luxury pipeline located in the country, according to data released ahead of Arabian Travel Market 2018, set to be held at Dubai World Trade Centre from April 22-25. The research demonstrates that luxury properties have increased three-fold in the GCC in just 10 years, with 95 per cent of these properties operated by international management brands. Despite taking the lead position, the UAE will face strong competition from Saudi Arabia, which is expected to witness the most significant increase in luxury hotel supply to 2022, with a Compound Annual Growth Rate (CAGR) of 18 per cent from 2018 onwards.
Historically, Saudi Arabia dominates CAGR trends, with luxury property development from 2013-2017 accounting for 11 per cent of the Kingdom’s growth in supply, compared to 8 per cent in the UAE, 7 per cent in Kuwait, 6 per cent in Oman and 5 per cent in Bahrain. In 2017, the UAE topped the table, with 35 per cent of the year’s pipeline made up of luxury projects most concentrated in Dubai.