Hotel investments in MENA to hit record high in 2018
Value of hotels due to be awarded next year could exceed US$14bn, according to MEED Projects, partner of AHIC 2018
Hotel investments in MENA to hit record high in 2018
The Arabian Hotel Investment Conference 2018 (AHIC) is forecasting significant opportunities for hotel investors targeting the Middle East in light of new data from MEED Projects, which predicts that more than US$14bn worth of hotel construction contracts will be awarded in 2018.
According to MEED Projects, the online projects tracking service, the value of new hotel investments in the MENA region could hit a record high in 2018.
Ed James, Director of Content and Analysis at MEED Projects, said: "After a relatively subdued 2017 up to end of November which has seen US$5.45bn worth of new hotel construction contracts awarded, the value of hotels due to be awarded next year is more than US$14bn. This total would comfortably exceed the US$8.5bn awarded in 2016 and the previous record of US$11.9bn awarded in 2015."
James added: "On the back of its forecasted performance, investment in hotels will comprise about 7 per cent of the total US$200bn scheduled projects spending in the MENA region next year, making it one of the most important construction subsectors. On a country basis, the UAE will be by far the largest market, with an expected US$8.4bn worth of contracts, followed by Saudi Arabia at US$1.9bn and Qatar at US$1.7bn."
These figures will be discussed at the 14th edition of AHIC, which will be held from 17-19 April 2018 at the purpose-built AHIC Village in the grounds of the Waldorf Astoria Ras Al Khaimah, UAE, in partnership with Ras Al Khaimah Tourism Development Authority (RAKTDA).
Jonathan Worsley, Chairman of Bench Events and Co-Founder of AHIC, said: "These new figures are exciting for the Middle East hospitality investment community, which gathers annually at AHIC. With oil prices now trading significantly higher than the January 2016 lows, we expect to see signs of recovery and stability in most regional economies."
He added: "There is still enormous potential for hotel development in this region, particularly as the industry seeks to diversify and we foresee significant growth in the mid-market and serviced apartments segments, particularly in the UAE and Saudi Arabia. With 'Focus on the Future' as our theme for AHIC 2018, the programme will include conference and networking sessions that tackle how to capitalise on these opportunities and maximise returns for the years ahead."
Partner of AHIC 2018, Haitham Mattar, CEO, RAKTDA, added that hotel investors would need to rise to the challenge of meeting the shifting demands of travellers and the specific requirements of certain demographic and geographic groups, such as millennials, families, and baby boomers, as well as halal travellers and those from emerging markets such as China and India.
"Investors need to understand these requirements and must also take into consideration from the outset which type of technology will drive the sector in the future – they need to consider this right at the beginning or risk becoming rapidly irrelevant," said Mattar.
He observed: "The biggest risk for hotel investors is not embracing the changes and challenges outlined above and expecting traditional business to keep on coming. It's no longer a case of build it and they will come. It's more a case of build what they want, and they will come. There's a lot of competition on the global scene for the business of the new emerging markets. The hotel guest is now very much in the driving seat from the very design and product development phase."
AHIC 2018, which promises to further knowledge, deepen existing relationships and forge new ones among the leaders of the hospitality investment community, will attract around 800 hotel investors, major developers, leading financiers, and C-level hotel executives to attend three days of content, networking and events.
About AHIC 2018
AHIC, now in its 14th year, is the annual gathering for the Middle East"s hospitality investment community organised by global hotel investment event organiser Bench Events in partnership with MEED Events. AHIC creates a knowledge and networking platform for global and regional investors of all backgrounds, offering essential insights to investing in hotels, showcasing regional and international hospitality investment opportunities and facilitating direct connections with hospitality industry stakeholders. AHIC 2018 will be held in a purpose-built AHIC Village on the beach of the Waldorf Astoria Ras Al Khaimah, UAE, from 17 April to 19 April 2018 in partnership with Ras Al Khaimah Tourism Development Authority (RAKTDA). Held under the patronage of His Highness Sheikh Saud Bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, AHIC 2018 will be co-hosted by its founding patron, His Highness Sheikh Ahmed bin Saeed al Maktoum, Chairman of Dubai Airports, President of Dubai Civil Aviation Authority and Chairman and CEO of Emirates Airline and Group, whose continued support of the industry and AHIC has been critical to the region"s tourism growth.
AHIC 2018 Sponsors
AHIC 2018 is hosted by Ras Al Khaimah Tourism Development Authority. Sponsors include: Al Marjan Island, Hilton and The Rezidor Hotel Group as Platinum Sponsors; AccorHotels, Bahrain Economic Development Board (EDB), Dur Hospitality, Emaar Hospitality Group, InterContinental Hotels Group (IHG), IWG (Insignia Worldwide Group), Marriott International; The Moroccan Agency for Tourism Development – SMIT and Wyndham Hotel Group as Emerald Sponsors; and Action Hotels, Colliers International, Louvre Hotels Group, Melia Hotels International, STR, Time Hotels and Roya International as Gold Sponsors.
About Bench Events
Global event organiser Bench Events has a long track record of delivering multiple premium hotel investment conferences and forums across Europe, the Middle East, Africa, Asia and Latin America. Market leading annual conferences include the Arabian Hotel Investment Conference (AHIC) in Dubai, now in its 14th year, the Africa Hotel Investment Forum (AHIF) the new Asia Hotel and Tourism Investment Conference (AHTIC), The Summit in London and the Latin American Hotel & Tourism Investment Conferences (SAHIC). Bench Events" extensive portfolio also includes the Global Restaurant Investment Forum (GRIF) in Dubai and AviaDev, designed to promote the future air connectivity in Africa. Bench Events" mission is enabling prosperity by facilitating growth, networking, and thought leadership in the hospitality industry worldwide. www.benchevents.com
MEED is a remarkable senior management media brand, that encompasses subscription to the MEED Business Review publication and website, www.meed.com, as well as organising the MEED Quality Awards for Projects, AHIC and Innovation Live! MEED also works with clients on bespoke content, events, broadcast and digital offerings. MEED also has two high-value content businesses, MEED Projects and MEED Insight. MEED Projects is the Middle East's premium project tracking database and MEED Insight offers tailored research and in-depth analysis. Established in 1957, MEED, has been integral to delivering business information and news, intelligence and analysis on the Middle East economies and activities ever since. www.meed.com
About Ras Al Khaimah Tourism Development Authority (RAKTDA)
The Ras Al Khaimah Tourism Development Authority (RAKTDA) was established in May 2011 under the government of Ras Al Khaimah. In order to achieve target growth of one million visitors by the end of 2018, the authority aims to develop the emirate"s tourism infrastructure and establish Ras Al Khaimah as a world-class destination for leisure and business travel, creating sustainable investment opportunities and enhancing the quality of life for its residents. In order to achieve its goals, the RAKTDA has a government mandate to license, regulate and monitor the emirate"s tourism and hospitality industry.