a detailed overview of hospitality projects in the region...a detailed overview of hospitality...

A detailed overview of hospitality projects in the region

The latest outlook for the years ahead

Ed JamesDirector of Content & Analysis, MEED Projects

All the project information in this presentation is sourced from MEED Projects

MEED Projects is a Middle East, North and East Africa project tracking platform. It has two major functions;it is a business development tool to help you find new business opportunities and an analysis tool so youcan assess the feasibility of potential new markets and projects.

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Crude oil prices 2013-18 ($ a barrel)

Source: FT.com

THE OIL PRICE

HISTORICAL AWARDS

Source: MEED Projects

Value of GCC contract awards, 2015-2017 ($m)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Bahrain Kuwait Oman Qatar Saudi Arabia UAE

2015 2016 2017

Value of GCC contracts awarded 2017 ($m)


Total = $120bn

2017 worst case scenario = $112bn

So market performed a little better than the worst case scenario

UAE, Oman and Bahrain performed much better than expected. KSA

performed substantially worse than anticipated

6,525

13,042 13,864 12,764

25,409

48,413

0

10,000

20,000

30,000

40,000

50,000

60,000


2017

2017 COMPARISON


Value of GCC Construction and Transport contracts awarded in 2017 by area ($m)

Dubai’s performance is the only thing to have

saved the market from meltdown

0

5,000

10,000

15,000

20,000

25,000

Doha Municipality Emirate of AbuDhabi

Emirate of Dubai Mecca Province MuscatGovernorate

Riyadh Province

Construction Transport

GCC Hotel Investment


Value of GCC hotel construction contracts awarded, 2013-17 ($m)

4062

7985

8789

5790

5080

1246

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2013 2014 2015 2016 2017 2018

A total of nearly $33bn worth of hotel construction investment in the region over the past five years



Value of GCC hotel construction contracts awarded by country, 2013-17 ($m)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000


2013 2014 2015 2016 2017 2018



Value of GCC hotel construction contracts awarded by top 10 cities 2013-17 ($m)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Abu Dhabi Doha Dubai Fujairah Jeddah Manama Mecca Muscat Riyadh Sharjah

2013 2014 2015 2016 2017 2018


Source: MEED Projects; excludes hotels currently under construction

Value of GCC hotel construction projects by operator, 2013-17 ($m)

0 500 1000 1500 2000 2500 3000

Hilton Worldwide

Accor

Starwood Hotels & Resorts

Jumeirah Hotels & Resorts

Marriott International

The Address Hotels and Resorts

Kerzner International Resorts

Millennium & Copthorne Hotels

Rotana Hotel Management

InterContinental Hotels Group

Wyndham Hotel Group

Viceroy Hotel Group

Taj Hotels Resorts & Palaces

Shaza Hotels

Roda Hotels & Resorts

StayWell Hospitality Group

The Langham Hotels & resorts

Minor International

Raffles Hotels

Top Projects 2013-17


Top hotel projects awarded in the GCC 2013-17

Project Country Estimated value ($m)ICD - Palm Jumeirah: Royal Atlantis Resort & Residences (Phase 2) UAE 842Arenco - Palm Jumeirah : Arenco H2 and H3 Resort Hotels UAE 614Jabal Omar Development Company - Jabal Omar: Phase 4 Saudi Arabia 613Emaar - Downtown Dubai: The Address Residence Sky View : Main Works UAE 489Dubai International Real Estate - Jewel of Creek Development: Package 8 UAE 395Meraas Holding - Bluewaters Island : Venu Hotel UAE 381Al Rajhi Investment - Tilal Al-Naseem : Naseem 3 Saudi Arabia 380Asas Capital - Park Regis Makkah Saudi Arabia 360First Qatar Real Estate - Panorama Residences and Suites (Parcel AQ-07) Qatar 350Dubai Holding - Jumeirah Al Naseem UAE 350Eagle Hills - The Address Fujairah Resort + Spa UAE 326Gemstone Real Estate Development - Aqua Raffles Hotel Jeddah Saudi Arabia 320Al Rajhi Investment - Tilal Al-Naseem : Naseem 4 Saudi Arabia 300AMIAS - Shangri-La Residences Jeddah (Sail Tower) Saudi Arabia 300Meraas Holdings - Pearl Jumeirah: Nikki Beach Resort UAE 294Daphne Hotels Company - JW Mariott Hotel Tower Qatar 285Assas Investments - Palm Jumeirah : Viceroy Hotel UAE 272S. H. Al Mana / Al Sharq - Palm Jumeirah : W Hotel and Alef Residences UAE 270RSG - Lusail Development: Langham Place Qatar 260

Top Projects Q12018


Top hotel projects awarded in the GCC Q12018

Project Country Estimated value ($m)

Damac Properties - Aykon City : Phase 1: Tower B UAE 163Omniyat Properties- Business Bay: Dorchester Hotel (Plot No:BB.B03.018) UAE 160MOBH - Dubai South : Hilton Dubai Hotel UAE 120RAK Properties - Hayat Island : InterContinental Mina Al Arab Resort UAE 92Khamas Group - JVC : Marriott JVC Hotel & Residence Inn (Plot No : JVC17TCP00) UAE 80Private Developer - Movenpick Hotel Bausher Oman 80Binghatti Developers - Millennium Binghatti Residences UAE 80Wasl - Aloft & Element Hotel at Al Raffa (Plot No.3160553) UAE 72MOBH - IMPZ : Radisson Blu Hotel (Plot No : MS 001) UAE 60Kukh Al Raidah For Development & Real Estate Investment - Hotel Towers Saudi Arabia 45Nuzul - Samhan Heritage Five Star Hotel At Al Diriyah Saudi Arabia 44Private Developer - Diwan Residence Towers Saudi Arabia 40Action Hotels Limited - Novotel Sharq Hotel Kuwait 40Aces Property - Jumeirah Village Circle : Dusit Princess Aces UAE 40ITICO - Dubai Healthcare City : Marriott Residence Inn (Plot No. DHC2.A.02) UAE 30

Future GCC Hotel Investment


Value of known future GCC hotel construction projects ($m)

1215

80

21431443

3230

12319

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000


Current known and planned investment is just over $20bn



Value of known future GCC hotel construction projects by city ($m)

1972

1000

8044

7031023 920

1215 1026 852 663

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000



Rooms pipeline of known future GCC hotel construction projects

867 322

5855

1795

6602

32803

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000


More than 47,000 rooms in the future hotels pipeline in the region



Rooms pipeline of known future GCC hotel construction projects by city

3542

24320

20141060 1265 1960 2683

1395 1263 1545

0

5,000

10,000

15,000

20,000

25,000

30,000

Top Future Projects


Selected top future hotel projects in the GCC

Project Country Estimated value ($m)Duqm Beach Touristic Resort LLC - Duqm Beach Resort Oman 500Jabal Omar Development Company - Jabal Omar: Phase 6 Saudi Arabia 450Jabal Omar Development Company - Jabal Omar: Phase 5 Saudi Arabia 426DIRE - Roda Hotels in Al Garhoud UAE 408Qetaifan Projects Company - Qetaifan Island North: Phase 1 Qatar 400MAG PD - DHCC : MAG of Life Creek Resort : Main works UAE 360Sisban - Fairmont Jeddah Hotel & Resort Saudi Arabia 350Dubai International Real Estate - Jewel of the Creek Development : Package 9 UAE 300Eagle Hills - Vida Marassi Al Bahrain Bahrain 300Al Alfia Holding - Dream Doha Qatar 300Emaar - Dubai Creek Harbour : The Address Harbour Point UAE 300Naseel - Park Hyatt Riyadh Saudi Arabia 300Diyar Al Muharraq / Eagle Hills - The Address: Marassi Al Bahrain Bahrain 300Al Alfia Holding - Hotel Tower in Lusail Qatar 280Omniyat Properties - Business Bay : Langham Place Downtown Dubai UAE 273Damac Properties - Akoya Oxygen : Golfotel UAE 250Wasl - Jumeirah Beach : MGM Resort UAE 250Miral - Yas Bay : Hilton Abu Dhabi Yas Island Resort UAE 250Al Jasrah Real Estate Development - Lusail Development: Alar Hotel Qatar 240Gulf Related - Maryah Central : South Tower UAE 230



Value of known future GCC hotel construction projects by operator ($m)

0 200 400 600 800 1000 1200

Fairmont Hotels & Resorts

Vida Hotels & Resorts

Roda Hotels & Resorts

Hilton Worldwide

The Address Hotels and Resorts

Marriott International

Katara Hospitality

Rotana Hotel Management

Movenpick Hotel & Resort

Hyatt Corporation

Starwood Hotels & Resorts

Dream Hotel Group

Emaar Hospitality Group

The Langham Hotels & resorts

InterContinental Hotels Group

Paramount Hotels & Resorts

MGM Resorts International

Minor International

Accor

Rove Hotels

Value of Planned and Un-awarded GCC Projects ($m)


69092

171619134583 158389

1243477

715202

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000


Future Projects

Value of Planned and Un-awarded GCC Projects by sector ($m)


82991

1458975

7871229397

107916

224194

453913

56264

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Chemical Construction Gas Industrial Oil Power Transport Water

Future Projects

Summary

• Hotel investment in the region has been significant since the economic boom started with higher oilprices in 2003. The past five years have seen more than $30bn worth of investment in hotels, but likeother sectors spending has slowed considerably in the last two years with lower oil prices

• The exception has been Dubai which has been able to continue to attract increasing numbers MICE,business and tourist travelers to the emirate. Other markets appear to be suffering from over-supply inmany areas to compound the issue

• Dubai is expected to be the clear leader for hotel investment in the GCC over the next five years as itcontinues to announce new hotels and invest in tourist and commercial attractions. All told there aremore than $20bn worth of hotel projects in the regional pipeline comprising more than 47,000 rooms

• The outlook in other markets is much less bearish although opportunities remain in specific areas suchas the Red Sea coast, Duqm, and the Holy Cities

• Regional hotel brands are expected to become a lot more prominent; three of the top five future leadingoperators by investment pipeline are forecasted to be regional players

Future Projects – MGM Belagio Dubai

Future Projects – Vida Marassi Bahrain

Future Projects – Park Hyatt Riyadh

Future Projects – Hilton Yas Island

a detailed overview of hospitality projects in the region...a detailed overview of hospitality...

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