middle east hotels report

8/11/2019 Middle East Hotels Report

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Gateway

for growthMiddle East cities hotel forecast for 2014 and 2015.Abu Dhabi, Doha, Dubai, Jeddah, Muscat, Riyadh

May 2014

www.pwc.com/me


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Middle East cities hotel forecast for 2014 and 2015 1

ContentsSummary

How did 2013 turn out?

Spotlight on prospects for 2014 and 2015

Beyond the data: trends transforming hotel businesses

Economic, travel and supply outlook

Which cities are best placed to grow?

About the survey, methodology and model assumptions

Appendices:

Further reading

Contacts

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4

6

10

16

23

36

38

39

40

About the survey, methodolo-

gy

and model assumptions


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Gateway for growth2

There are six cities in this new Middle Easteconometric forecast - Abu Dhabi, Doha,Dubai, Jeddah, Muscat and Riyadh. All areimportant gateway or capital cities and/or

business and tourism destinations. Someare emerging as magnets for Meetings,Incentives, Conferences and Exhibitions(MICE), Mega Events and leisure/shopping travelers. Some, including Dubaiand Doha are heading at breakneck speedinto the future. Dubai will host the Expo in2020 and Qatar the FIFA World Cup in 2022.Although outside the parametersof this forecast, planning is already heavilyunderway and will mean signicant new

supply preparations.

According to the United Nations WorldTourism Organisation (UNWTO), the MiddleEast was visited by 52 million internationalvisitors last year. Travel is forecast togrow strongly over the next 10 years andthe region will see robust demand foraccommodation, according to a recent reportfrom Oxford Economics and Amadeus.

This rst edition of our Middle East cities hotel

forecast is published amidst some of the fastestgrowing tourism and hotel markets in the world

Summary


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Future volumes of domestic and international travelerswill also shape the hotel landscape demand for non-beachproperties in Dubai is almost on par with demand forbeach properties.

The regions strategic location means hub airports such asDubai, Abu Dhabi and Doha already lead the ght to attractglobal transfer long haul passengers. Continued investmentin airports and transportation networks will only strengthenthis position.

The six cities represent over 124,000 hotel rooms and haveseen high levels of new supply added in recent years withmore scheduled to open. In Qatar, 45,000 further hotelrooms are reported to be required to meet FIFA WorldCup capacity requirements, with 21 hotels planned forconstruction by 2017. In Dubai, The Department of Tourismand Commerce Marketing estimate a need for between

140,000 to 160,000 new rooms by 2020, with a further10,000 plus rooms being reported as needing refurbishmentprior to the Expo2020.

This forecast snapshot (taken in April 2014) looks at theprospects for the six hotel destinations cities in 2014 and2015 and at some key issues facing them.

We anticipate growth in metrics for all cities across 2014and 2015 only Riyadh is forecast negative ADR growth.Top RevPAR growth stories in both 2014 and 2015 are Dubaiand Muscat at 6.5% and 6 .6% respectively. We forecastoccupancy growth ranges from 1.7% in Dubai, which isalready achieving levels of 84% in Q1 2014 (STR Global2014) to 3.9% in Riyadh, where current occupancy is much

lower at 56% in 2013 (STR Global 2013).

Opportunity and growth potential

A number of Mega Events coming to the region(Expo 2020, and Qatar World Cup 2022) and the improvingeconomic backdrop in our featured cities, have the potential

to reinvigorate and reshape the Middle East hotel sector.However the current political instability and impact fromthe Arab Spring leaves many of the remaining Middle Eastcountries facing declining occupancies and RevPAR. Egyptand Beirut continue to suffer the most across the region withSTR Global reporting signicant drops in both occupancyrates of 18% and 25% respectively, and reductions in RevPAR

by 20% and 30% respectively in the rst quarter in 2014.Although outside the scope of t his report, this is per tinentto the featured cities, as many of these, and in particularDubai, are beneting from increasing numbers of bothtourist and business travelers who are seeking outstable destinations.

Owners and operators are pressed to achieve protable

growth and capitalise on the improved environment andthe new opportunities a changing world offers. There isplenty of room to grow on many fronts including travelervolumes, new hotels and brands coming into the region andinvestment opportunities.

Megatrends that are transforming todays businesses includeshifts in global economic power, innovation in technologyand demographic change.

Within the region, hotels need to be nimble and understand

the issues and their implications for business. The mobileand digital revolution is taking hotels into a whole new worldas they battle to stay relevant to consumers.


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Gateway for growth4

How did 2013turn out?

The pace of recovery picked up in 2013,

but still falls short of pre-recession levels

Where is the market today versuspre-recession?

In terms of where we are compared to beforethe global recession, data from STR Globalsuggests that the Middle East hotel market*as a whole remains signicantly below itspre-recession level in both nominal andreal terms.

The hotels sector real RevPAR has notrecovered since the recession. Since 2007,while real RevPAR has declined 10% peryear, real GDP in the region has beenrelatively resilient due to public spendingon infrastructure, growing at an averageof 4% per year.

Demand fell sharply in 2009 against ahigh construction pipeline and while bothoccupancy and ADR levels are creeping backup again, occupancy has recovered mostlost ground.

Occupancy nished 2013 at 66.8% comparedto its 2008 level of 68.2%. After four yearsof decline ADR recovered by 3.1% in 2013,but remains almost $30 below 2008 levels.RevPAR saw a healthy 6.3% gain over 2012,to $135.7.


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Solid overall improvement in 2013.

The chart shows t hat 2013 has achieved some solid improvement over 2 012 as therecovery continues.

.driven predominately by occupancy

Overall, 5 of the 6 countries, the exception being Riyadh, saw an increase in RevPAR in 2013.All the same, 2013 was a mixed year for many of the six markets in our forecast (see moredetail in the individual city pages).

Occupancy was the principal growth driver, with all cities except Jeddah achieving positivegrowth. However only Muscat, Dubai and Jeddah saw positive growth in ADR during 2013.

Dubai in particular had a very good year driven by its diverse visitor prole, the range ofits events, its pre-eminence as a MICE destination, and investment in infrastructure suchas the airports. Their reward was very high occupancy at almost 80% in 2013 and ADR up6.5%. Jeddah was another top performing hotel market in 2013 from an ADR perspective,benetting as the premier leisure destination in Saudi Arabia, in addition to its role as acorporate and religious tourism destination however this ADR growth was offset by a fall in

occupancy of 4%. Muscat enjoyed a large double digit leap in occupancy for the second yearin succession and a boost to ADR after 3 years of decline. Abu Dhabi saw a 12.5% occupancygain but a fourth successive year of declines in ADR, albeit the rate of decline has slowedconsiderably. Doha welcomed more leisure visitors and occupancy jumped by almost 11% butsuffered a large ADR decline. Riyadh struggled against supply additions but managed to limitthe impact to a small ADR decline and at occupancy level.

Source: STR Global 2014

*Afghanistan, Bahrain, Iran, Iraq, Jordan, Kuwait, Lebanon, Oman, Qatar, KSA, Syrai, UAE, Yemen


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Gateway for growth6

Spotlight on prospectsfor 2014 and 2015

Cities reinvigorated by economic recovery and

future Mega Events. RevPAR growth across allour featured cities.

A growth story

The good news is that the improvingeconomic and travel backdrop, partneredwith future Mega Events, has fed intoimprovements in trading fundamentals inall cities analysed. It can be seen from theRevPAR growth outlook chart that the paceof growth clearly varies from city to city.

Whilst the return to growth is evident in eachof the cities, challenges still remain and it isoften unclear as to whether this trend willcrystallise across all locations and whetherthis will be consistent for both 2014 and2015. The instability in the rest of the MiddleEast region can provide both a positive andnegative impact on these six cities.

However, despite challenges there are somesignicant opportunities so which citiesare best placed to take advantage of theimproving economic backdrop?


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Top RevPAR growth stories are Muscat,Dubai and Doha

Muscat is expected to benet from the development of majorprojects (Muscat Hills and The Wave) and the expansion ofthe airport and infrastructure, providing hotel development

opportunities in neighbouring cities both factors expectedto drive up RevPAR by 6.6% in both 2014 and 2015.

In Dubai, despite a signicant supply pipeline, we expectoccupancy and ADR to grow by 1.7% and 4.7% respectivelyin 2014 and 2015, as the city continues to bene t fromincreasing numbers of international and domestic, businessand tourist visitors.

A reversal of the trend of declining ADRs is expected

in Doha, with an expected return to growth of 3.3% in2014. Increasing supply of luxury hotels and the extensiveinfrastructure/construction projects in the build up toWorld Cup 2022 are providing a much needed boost to the

hotel industry.

Whats driving growth?

Its a mix of ADR and occupancy and the cities fall into two

camps. In the strongest RevPAR growth cities of Doha, Dubaiand Muscat we are anticipating ADR being the strongestmetric. Despite sizeable supply increases in these cities,strong demand should continue to drive growth acrossall metrics.

However for Jeddah, Riyadh and Abu Dhabi occupancyis the principal driver, with low growth forecast on ADR(or negative growth in the case of Riyadh).

Supply casts a shadow insome cities

The ambitious growth plans of most of the cities providesignicant levels of new supply. An element of caution isneeded in off-peak times to ensure excess supply does notdrag down performance. For those cities looking forwardto future Mega Events, particularly Doha, the challenge willcontinue to be successful planning for the post-event legacy.


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Gateway for growth8

Middle East citiesOccupancy & ADR weather map 2014 & 2015

Syria

BahrainQatar

UAE

Yemen

Oman

3.90%4.05% 3.83%

Saudi Arabia

Kuwait

Riyadh

UAE

2014

Occupancy ADR

2015

3.9%

-0.4%

Doha

1.8%

3.3%

1.9%

3.4%

Muscat

2.0%

4.4%

2.0%

4.5%

Abu Dhabi

2.7%

1.9%

2.7%

2.0%

Dubai

1.7%

4.7%

1.7%

4.7%Jeddah

Key

2. 9% 2 .9%

1.1%1.2%

Jordan

3.9%

Iraq

-0.4%


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Which cities are the most expensive, the fullestand have the highest RevPAR?

The highest occupancies

In 2014 the highest occupancies are forecastto be in Dubai (81.1%) and Jeddah (77.9%).In 2015 we anticipate all cities seeing furthergrowth with Dubai and Jeddah still leading

the way, and Abu Dhabi also exceeding 70%.

The highest ADRs

In 2014 the most expensive city is forecastto be Dubai, closely followed by Riyadh andJeddah. This story continues in 2015 withMuscat also close to the forerunners.

The highest RevPARs

In both 2014 and 2015 Dubai is out onits own; high ADRs and occupancy ratestranslating into lofty RevPAR. Jeddah comesin comfortably in second place, the lower

historic ADRs and a lower forecast drivingthe RevPAR differential from Dubai.

Its not just about growth rates, the absolute levels are trading are also a key piece of the jigsaw. Each city has its own supply and demandcharacteristics and could be on a different stage on the hotel cycle - Dubai is a mature destination, with high ADRs and occupancies andquality beach properties demanding a premium over comparable city hotels, whereas Doha is emerging and has the challenge of maintainingmomentum until Qatar 2022. All such factors and more need to be taken into consideration in any comparisons.

City Occupancy ratesADR

(local currency)ADR(US$ )

RevPAR(local currency)

RevPAR(US$ )

2014 2015 2014 2015 2014 2015 2014 2015 2014 2015

Abu Dhabi

Doha

Dubai

Jeddah

Muscat

Riyadh

69.2

67.0

81.1

77.9

67.7

57.8

71.1

68.2

82.5

80.1

69.0

60.1

557.0

699.7

936.1

903.3

87.2

938.6

567.9

723.9

980.5

913.2

91.2

934.6

151.9

192.2

254.9

240.8

226.5

250.2

154.6

198.8

266.9

243.5

236.9

249.2

385.6

468.5

759.3

703.3

59.0

542.7

403.8

493.9

808.9

731.2

63.0

561.4

105.0

128.7

206.7

187.5

153.2

144.7

110.0

135.6

220.2

194.9

163.6

149.7

Source: Econometric forecast PwC 2014

Benchmarking data: STR Global

*Monetary values have been converted to US$ from local currency units based on projections for future exchangerates derived from the International Monetary Funds World Economic Outlook datebase, April 2014.

AED: US$ (3.673)

SAR: US$ (3.751)

QAR: US$ (3.641)

OMR: US$ (0.385)

Currency conversion rates


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Gateway for growth10

We are helping our clients to think about howstructural changes (megatrends) will affecttheir business models. Here we briey describethe ve megatrends, followed by some potentialimplications for the hotels sector.

Beyond the data: trendstransforming hotel businesses


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The global economic landscape is changing quickly, and hotels have toconstantly adapt to these changes to remain successful in the market

Megatrend

s

Imp

licationsforthe

hospitalityindustry

Shifts in global economicpower

Customer

The realignment of the globaleconomy from west to east

The number of international tourists aswell as emerging domestic tourists withindeveloping economies will increase andhotels will increasingly need to cater toa multi-cultural clientele and providemore diverse and a mid-market range ofaccommodation products

Hotels will need to customize their offeringto attract c hanging demographics, e.g olderpeople, as this groups rises in size andpurchasing power but also varying demandfrom a younger domestic customer base

Increased supply of budget hotels in somemarkets across Middle East

Investment from emerging market rmswill further increase competition in manymarkets

Hotels will need to optimally balancebookings through their own website andthrough travel sites

Emergence of local home-grown brandssuch as Rotana and Jumeirah

Economic inequality will increase pressureon policy makers to raise minimum

wages; hotels must nd ways of mitigatingthe impact of rising wages withoutcompromising on competitiveness andquality of service

Meanwhile, standard business practiceswill need to adapt to the challenges ofclimate change by adopting more greenpractices

The new generation of customers are ableto provide feedback through social mediaenabling their search for the best deal

Fixed costs of marketing and customercommunications are lower than ever beforeleading to the rise of micro- providers

Ageing of the western world Social change/travel habits

Stagnation of median incomesacross the developed world

Social media, mobile service,analytics and cloud services willdrive technological change inorganizations

The current pace of urbanisationacross the Middle East is thereto stay - though with a risk todepletion of natural resources

The glue that holds the citytogether is changing: from jobs toquality of life

Current patterns of resource usageand emissions are unsustainable

The consequences of mitigation oradaptation to climate change

Demographic and socialchange

Competition

Technologicalbreakthroughs

Business model

Acceleratingurbanisation

Technology

Sustainability, Climatechange and scarceresources


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Megatrends: technological change where is digital taking hotels?

Digital and mobile platforms are changing everythingIn 2013, 1.1 billion international business and leisuretravelers were recorded and changes in global demographicsand rapid technological change mean these consumers havedifferent expectations, greater freedom of choice and a highdegree of famili arity with digital technology. By 2017, morethan 3 billion people will have mobile internet access. 1

At the same time, mobile and tablet hotel bookings arealready beginning to overtake traditional web-basedbooking. The travel consumer is leading the way in drivingtechnological change.

A new generation of customers

Travel consumers want mobility, exibility and easy real-time access to information and to shop and pay safely andeasily on the go. They expect seamless connectivity allowingthem to access the content they want when they want itacross all platforms, and also increasingly expecting seamlesstransitions between different platforms.

1PwC Global Entertainment & Media Outlook: 2017-2013, www.pwc.co.uk/outlook2IHG, The new kinship economy: from travel experiences to travel relationships3 www.tnooz.com/article/the-most-popular-mobile-travel-apps-so-far-in2013-/


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These new customers will judge the best dealbased on feedback through social media. Theimportance of feedback through social mediais not to be underestimated. Abu Dhabi plansto integrate social media rakings into itsofcial hotel classication in 2014 the rsttourism authority to do so.

An InterContinental Hotel Group (IHG)survey showed that 43% of adults wouldchoose not to stay in a hotel that chargedfor the internet, with travelers from China

placing the most importance on connectivity,with nearly 47% listing it as the mostimportant thing to them when staying in ahotel for business.2After IHG offered freewi- for its loyalty programme members,Accor and others made this freely availableto all customers. Connectivity has become anessential part of the hotel offering, on a parwith electricity and water.

...creating a lot of challenges for hotels but also opportunities

While these trends present someopportunities for hotel companies, they alsopresent a complex dilemma because as hotelstry to differentiate themselves from eachother and from online intermediaries theissue is how can they evaluate the optimalchannel distribution mix as well as win andkeep customers and do it protably?

It means conventional hotel business modelsare being challenged by the emergenceof well-established as well as new onlineentrants mediating between hotelierand guest, and disrupting the traditionalpatterns of planning and reservations. Theseplayers are diluting hotels brand visibility,

threatening their margins, and weakeningcustomer loyalty by eroding the directrelationship between the hotel operator andeven its most regular loyal customers.

Cellular phones are playing their part heretoo. PhocusWright has estimated that onlinetravel agencies made up about 64% of grossmobile hotel bookings in 2012, comparedwith 36% for hotels own mobile sites.

If free wi- is not a component of abroader digital strategy, then it maybecome part of the threat ofcommoditisation, a commoditisation in

which the hotel becomes just a room anda router.

Hotels are ghting back against commoditisationHoteliers toolkit for ghting commoditisation should include: Developing a bus iness strategy for the digital age (as opposed to a digital strategy)

Recognising the rise of the Digital Native segment

Using social media effectively

Using digital to take loyalty and personalisation further

Understanding big data by thinking small


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Issues facing hotels

The cost of doing business, regulations and taxes,competitive accommodation products, keeping

customers all these and more concern the sector

Cost of doing business is set to increase

Although economic prospects are improving and inationrates are relatively subdued across many countries, hotelswill have to be watchful of changes in the cost of doingbusiness. Hotels increasingly have to pay to secure bookingsfrom intermediaries like comparison websites, loyaltyprogrammes used by larger hotels must be funded, and afteryears of pay freezes or restraint employees are pushing for

higher salaries.

On the other hand xed costs of marketing and customercommunications are lower than ever before, leading tothe rise of micro-providers, e.g. Airbnb. Technologicalinnovations, such as automated check in and check outmay be as much about trying to reduce labour costs asabout meeting customer preferences, but are likely tobecome more common.


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Regulation and taxes on the rise?

In illustration of this we see hotels in manyareas of the world as victims of their ownsuccess and a source of additional revenuefor Governments. In Dubai, for example,the Government have imposed a hotel"tourism tax" on occupancy per room pernight (in addition to the 10% municipality

tax and 10% service charge), which is partof the Government's effort to fund theambitious tourism growth.

But, in contrast Dubai has recently alsoannounced plans to allocate new land, ease

planning laws and waive the tax on threeand four star hotels to encourage developersto build a broad range of three and four starhotels for Expo 2020.

More branding but a morepersonal touch needed

Branding is likely to continue as the largechains seek to gain market share and offerconsumers a range of products. However,not everyone thinks its a good thing andthere are calls for a more personal and lessstandardised approach to guests.

Chain brands with over 3,000 rooms inthe active pipeline in the region includeHilton, Radisson, Millennium and Starwood.Marriott, Rotana, IHG and Kempinski are notfar behind.


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Economic, travel andsupply outlook

Economic Outlook : GDP growthand Mega Events providing

positive outlook; however citiesneed to manage supply pipeline

In 2013, GDP growth in Oman, Qatar,Saudi Arabia and the United Arab Emiratesoutperformed the other oil-exporters in

the region.1

However, economic growth amongst oil-exporters in the region has been hit bydeclining oil production in 2013. Demandhas fallen due to increased supply fromalternative sources such as shale oil and gasin the USA. Governments in the region haveresponded to this decline by increasing theirinvestment (especially in infrastructure).Greater private sector lending and spendinghas also helped to offset the decline.

With the global economy recovering, GDPgrowth in the region is expected to improvefrom 2.3% in 2013 to 3.4% in 2014 and 3.9%in 2015.2Further, preparations for globalevents such as the World Expo in 2020 inDubai and the Football World Cup in 2022in Qatar are expected to drive investmentand add to growth.

However, the uncertainty around oil pricesand the growing political uncertainty in theregion pose substantial downside risks tothis outlook.

The key growth statistics3for thecountries in our study are below:

Average GDP growth in Qatarin the 2010-2013 period was close to 10.5%. It slowedmarkedly to 6.1% in 2013, and is expected

to be 5.9% in 2014 before improving to7.1% in 2015.

Similarly, in Saudi Arabia, GDP growth inthe 2010-2013 period was close to 6.4%. Itslowed to 3.8% in 2013, and is expected toimprove to 4.1% in 2014 and 4.2% in 2015.

In the UAE, growth improved from anaverage of 3.7% in the 2010-2013 periodwith 4.8% in 2013, and is expected todecrease to 4.4% in 2014 and 4.2%in 2015.

In Oman, GDP growth in 2013 was5.1%, in line with the recent average of5.0% between 2010 and 2013. Growth isexpected to slow down to 3.4% per year in

2014 and in 2015.

The global picture

The wider global market is expected to playa key role in determining demand for hotelsin the region and continued strong economicperformance should support the sector.We project global GDP growth to improvefrom 2.5% in 2013 to 3.1% in 2014 and 3.2%in 2015.4

1The oil exporting economies in the Middle East andNorth African (MENA) region are Algeria, Bahrain, Iran,Iraq, Libya, Kuwait, Oman, Qatar, Saudi Arabia and theUnited Arab Emirates. In 2013, the combined GDP growthrate in these economies was 2.0%.2Source: IMF World Economic Outlook (WEO), April 20143Source: IMF World Economic Outlook (WEO), April 20144Source: PwC Economic Projections, April 2014


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Middle East economic weather mapin 2013,2014 and 2015

Syria

BahrainQatar

UAE

Yemen

Oman

Saudi Arabia

GDP growth2013

GDP growth2014

GDP growth2015

4.38%3.57% 4.26%

Qatar

5.01%5.15% 6.63%

UAE

3.90%4.05% 3.83%

Oman

3.40%5.07% 3.36%

Key

Saudi Arabia

Kuwait

Iraq

Jordan


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Mixed and volatile 2013 butrobust future travel potential

Visitor volumes and overnights setfor rapid growth

International travel recovered rapidlyfrom the 2009 nancial crisis. In 2013international tourist arrivals globally grew

by 5% to reach a record 1,087 million. TheMiddle East, accounts for about 5% of globalarrivals and received a total of 52 millionarrivals in 2013, just 0.3% up on 2012 buta signicant improvement on the previousyear, when the region saw a 5% fall.

While several countries including Egypt,Syria, Iraq and Libya continue to strugglewith security concerns, ot hers powered onin their tourism ambitions to penetrate newand returning markets in 2013. The regionslargest destination, Dubai, saw robustgrowth of 10% in international arrivals in

2013 according to UNWTO, and Oman saw6% growth. Dubai received 11million stayingvisitors in 2013 (compared to 5 million10 years previously) and has ambitiousplans for 20 million by 2020 when Dubai

hosts the Expo. The UAEs success is partlyattributed to a wide variety of events, suchas the Formula One Championship held inAbu Dhabi in November 2013 and successfulMICE business including GITEX, CityScapeand others. The regions third largestdestination, Saudi Arabia, reported a 7%decline in 2013.

Growth in international tourist arrivals tothe Middle East averaged 4.6% between2005 and 2013, and travel is forecast toincrease by between 0% and 5% in 2014,according to UNWTO, as some countriessuffer, some recover slowly but others poweron. Oxford Economics and Amadeus forecastrapid growth in demand for accommodationin the Middle East and Africa (MEA) overthe next 10 years. Although MEA domesticmarkets have displayed weaker growththan some other global regions they can

be expected to become more importantin the next 10 years, according to OxfordEconomics/Amadeus.

Meetings market triples in10 years

An ICCA survey shows that the number ofassociations, meetings and conferences heldin the Middle East have tripled in the last

10 years and is expected to grow further.Leisure visitors are attracted by an extensiveevents programme as well as sun, sea and

shopping; sporting events; medical andreligious tourism.

Location means airports arewinning the battle for long-haultransfer passengers

The regions strategic global location meansthat Middle Eastern hub airports such asDubai, Abu Dhabi and Doha are leadingthe ght to attract transfer long-haulpassengers according to data from Amadeus.A whopping 19.2 million O&D (Origin andDestination) passengers were recorded yingthrough these three Middle East hubs in

2013, a 79% increase since 2009.

Hospitality to help sustainprosperity for the future

Hospitality is increasingly seen as an areathat can help attract investment and drivesustainable economic diversication, deliversocial benets and help in employmentcreation in the region. For example, Saudi

Arabia has said 1.7million jobs could becreated in the tourism sector over thenext 6 years. To this end, the region hasseen considerable investment in extensive

infrastructure, transport and tourism project.E.g. Dohas Hamad International Airport2014, Abu Dhabis new Cruise Terminal in2015, Muscat Cruise Terminal, Expansion ofMuscat International Airport, Al MaktoumInternational Airport in Dubai and KingAbdulaziz Economic City in Saudi.


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Construction pipeline down from peak

But high levels of new supply remain in some cities

Still, almost 78, 000 new roomsare under construction acrossthe region

According to recent data from LodgingEconometrics there are 276 hotelsand 77,972 rooms in the Middle Eastconstruction pipeline (at the end of2013). These totals are down 14% and16% respectively compared to 2012 as thepipeline recovers from the impact of the

nancial crisis and the real estate bubble.

Many markets are still contending withabsorbing the impact of past openingsas well as the resuscitation of previouslystalled projects. So, although demand isstrengthening and supply growth slowing,there remain more rooms available thanrooms sold according to data fromSTR Global.

For some destinations, such as Riyadhand Jeddah, the number of rooms underconstruction remains high and comprise

a very high proportion of existing supply.

Who has the most roomsunder construction?

Saudi Arabia reports the most rooms underconstruction with 17,135 rooms, accordingto STR Global. Four other countries endedFebruary with more than 2,500 rooms underconstruction: United Arab Emirates (16,627rooms); Qatar (5,633 rooms); Jordan (3,231rooms); and Egypt (2,966 rooms).In terms of cities, Dubai is building the mostrooms followed by Makkah, Riyadh, Doha,Abu Dhabi and Jeddah.

Large events drive development

Qatar intends to spend US$ 20 billion on

tourism infrastructure ahead of the WorldCup. Around 45,000 further hotel roomsare reported to be required, to meet FIFAcapacity requirements, with 21 hotelsplanned for construction by 2 017.

In Dubai upward of 10,000 rooms arereported needing refurbishments prior to theExpo in 2020. The Department of Tourism

and Commerce Marketing estimate a needfor between 140,000 to 160,000 new roomsby 2020.

Matching demand to supply to accommodatevisitors at peak times and for large events

runs the risk of overcapacity during non peak times.

Diversifying room supply

While the luxury and upscale hotel segmentwill continue to dominate the hotellandscape, times are changing; the sectorneeds to provide a range of accommodationproducts for growing domestic markets,whilst destinations need to widen theappeal to international visitors, to create

more variety and a more diversiedtourist experience.

In illustration, Dubai has announcedplans to accelerate the development ofmore affordable three and four star hoteldevelopment as it plans to widen its appealto new tourists and families. The UKs budgetPremier Inn chain has recently announced itwill open 14 hotels across Gulf CooperationCountries (including Sharjah, Riyadh,Manama, Muscat, Doha, Jeddah and Dubai)over the next three years.

Room for more internationalbrands

Chain brands with over 3,000 rooms inthe active pipeline include Hilton, Radisson,Millennium and Starwood. Marriott, Rotana,IHG and Kempinski are not far behind.


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The impact of Mega Events

Cities around the world compete to hostmega events, aspiring to create lastinglegacies that enhance their competitiveness.

The Middle East is looking forward to agolden decade, as it nds itself hosting twoof the worlds largest events so-called megaevents within two years of one another;

Expo2020 in Dubai, UAE, and the FIFA WorldCup in 2022 in Doha, Qatar.

In a hospitality context, meeting theimmediate needs of a mega event is nosimple task. Dubai and Doha both facechallenges to take their tourism sectors tothe next level: Dubai has become one of theworlds fastest growing destinations: even

without Expo, Dubai had set itself a target ofhosting 20m visitors per year by 2020 thatsalmost double the number they have comingthrough now. Doha, at an earlier st age ofdevelopment as a tourism destination has

started to invest heavily in the sector and isreportedly building an additional 21 newhotels by 2017 to reach the required 60,0 00capacity required by FIFA.

However, whilst we all agree that theseevents have great potential to deliver asignicant boost to both economies in the

short term, these events are not just abouttheir short term duration. They can have amuch longer term and far-reaching impact,if planned appropriately.

The historical role of a mega event inurban-transformation accompanied by anenduring boost in property values is well

documented, back to Rome in 1960, whichdeveloped a new water supply system, newhotels, improved transportation, and urbanlandscaping for the Olympics. In the early

nineties, Barcelona transformed its economyafter hosting the Summer Olympics andParalympics. By leveraging its US$ 8 billioninfrastructure investment, the city was ableto drive its tourism sector with an impressiveperformance: the number of tourists in thecity increased by 95% between 1990 and2001, making it the fourth most visited cityin Europe. Barcelona catalyzed the tourism

industry positively in all of Spain, morethan doubling tourism share of the GDPfrom 4% to 10% with over 60 milliontourists annually.

This kind of legacy is not an automaticbenet of a mega event; investment in legacy both before and after the event is essential to secure it. And its not possibleto create this without the right hotelinfrastructure.

When planning what longer term impact

a mega event can have, its important tobe clear about how the infrastructure andprogrammes are going to impact the citypopulation, and in the case of hospitality,how will cities continue to attract touristsbeyond the event itself?

Many growth market mega-event hostshave been known to leverage the megaevent to draw attention on the world

stagesometimes described as a coming-out party. They view mega-events as anopportunity to showcase their economicdevelopment successes to the world as well

as to attract future economic growth.

As China did with the Summer Olympicsand Paralympics in 2008, South Africa withfootballs 2010 FIFA World Cup, Indiawith the 2010 Commonwealth Games,Russia with the Sochi 2014 Olympic andParalympic Winter Games, and Brazil withfootballs 2014 FIFA World Cup fol lowed

by the Summer Oly mpics in 2016. However,a poorly delivered event can also resultin negatively impacting the city/ nationalimage as it was the case in New DelhisCommonwealth Games that suffered from

delays, allegations of corruptionand damaged the citys brand amongstits visitors.

The unrelenting deadlines in place for mega-events allow growth markets to acceleratetheir long-term development by a decade ormore, bringing with that acceleration the

accompanying economic growth.

So, how can mega events have a longer termand far-reaching impact? One solution isto create longer term business or tourism

attractions that continue to bring in visitors.Dubai for instance has already becomea major destination hosting businessconferences, that were once hosted in the

Egyptian capital, Cairo - unrest there hasseen business activity ow into the likesof Dubai, seen as a relative safe haven.(In Sochi, for example, plans are underwayto create a Russian Disney type park thatcelebrates Russian cultural heritage, andattract back many home tourists that nowvisit the likes of Dubai).

Qatar will spend more than $200 billion oninfrastructure projects between 2013 and2018, and has already begun repositioningitself as a sports and entertainment hub inthe Middle East by hosting the 2006 Asian

Games as well as both the Pan Arab Gamesand the Asian Football Confederations AsianCup in 2011.


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Successful cities have also managed tocreate a busy calendar of events thatleverage the additional capacity built for

mega events throughout the year. BothDubai and Doha have invested heavily inpromoting their cities as MICE destinations,for not-so-mega sporting events such as

the Formula One, Rugby Sevens, Golf andTennis Championships and also for othernon-sporting events such as shopping andcultural festivals. To carefully managethe growth of capacity beyond whats canbe sustainably occupied, weve seen hostcities come up with some nimble solutionsto similar issues its not an uncommonsight to see cruise ships moored outside of

host destinations, creating some additional40,000 capacity.

Mega events, if managed properly willprovide a much needed catalyst to drive

infrastructure in emerging economies. Theyhave the potential to create a pos itive imageand increase a citys brand recognition andits share in global tourism. However, successrequires careful planning, well managedexecution. A collaborative approach toengage the relative stakeholders acrossgovernment entities together with the

private sector, citizen engagement andleadership are all key success factor tocreating a lasting legacy from a mega event.


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Which cities are best placed to grow?


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Abu Dhabi

Role

Abu Dhabi is the capital of United Arab Emirates,with a population of about 921,000 in 2013.Abu Dhabi has grown to be a cosmopolitan metropolis.

Its rapid development and urbanisation, coupled withthe relatively high average income of its population,has transformed Abu Dhabi to a larger and advancedmetropolis. Today the city is the countrys center ofpolitical and industrial activities, and a major culturaland commercial center, due to its position as the capital.It is one of the worlds largest producers of oil and hasactively attempted to diversify its economy in recent

estate and tourism. Demand from foreign travelers has

increased strongly in recent years.

2013 Trading

The hotel industry had its best year yet in terms of guestarrivals, guest nights, length-of-stay and revenues,

and Culture Authority (TCA Abu Dhabi). In 2013,2.8 guests checked into the emirates 150 hotels and hotelapartments, a rise of 18 percent on 2012 and beating TCA

Abu Dhabis annual target of 2.5 million. The 2013 guestintake has increased by 26%, with total RevPAR andoccupancy rate increasing by 11.6% and 12.5% respectively.However, the average room rate saw a slight decline of1% in the year.

Latest supply trends

The year 2013 saw 13 more hotels and hotel apartmentsopen resulting in 10% increase in supply, as reported bythe Chairman of TCA Abu Dhabi. Abu Dhabi is investing

billions of dollars in infrastructure, real estate andtourism to diversify its oil based economy. A total ofapproximately 4,693 rooms are scheduled forcompletion between 2014-2015. Several hoteldevelopments that are coming up in 2014 include, butare not limited to Courtyard by Marriott Abu DhabiCentral Market, Abu Dhabi Marriott Hotel, MillenniumBab Al Qasr Hotel and Marriott Executive Apartments.Many strategic projects are under way or in the pipelineincluding the expansion of Abu Dhabi International

Airport, the Abu Dhabi Louvre museum andconstructionexpected

to start operations in 2017 and others are planned to follow

in 2020.

Opportunities

With an improving economy and overseas tourismforecast to keep growing in 2014, the year should seestrong hotel trading trends with a positive impact onhotel values. Abu Dhabi plans to integrate social media

year

hotels website helps spread awareness about theircomprehensive online presence and will also draw

Besides, tourism is likely to be boosted by the launchof more routes by Etihad Airways. With more air accessuplift promised in 2014, with Etihad Airways planning

Worth, new business opportunities and tourism willincrease, as reported by the deputy director generalof TCA Abu Dhabi.

Following a strong 2013, we anticipatecontinued growth in RevPAR of 4.7% in both2014 and 2015. Despite increased supply,occupancy levels are forecast to increasedriven by high tourist demand.


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Dubai

Role

Dubai is one of the few cities in the world that hasundergone a rapid transformation - from a pearl-divingcentre - to one of the fastest growing cities on earth.

Today it is a tourism, trade and logistics hub and oneof the most cosmopolitan cities in the world. Thehospitality industry is one of the main engines of thegrowth in Dubai. Increased number of hotel rooms,tourist arrivals and enhanced ight connections to newand growing markets are the key components for thisgrowth. There was a marked improvement in the overallbusiness optimism and economic activity in Dubaiduring the year, which was led by the tourism sector.With a number of new projects announced, such as theMohammed Bin Rashid City, and previously delayedschemes coming back, Dubai is forecasted to achieveimpressive economic growth in 2014 and beyond.

Dubai has been named as one of the top 25 places to goworldwide in the Traveler Choice Awards 2014 by TripAdvisor, the worlds largest travel site and is the most

popular tourist destination in the region.

2013 Trading

In 2013, Department of Tourism and CommerceMarketing (DTCM) reported an increase in guest arrivalreaching 11million compared to 10million recorded in2012. RevPAR increased by 9.5% in 2013, driven by a6.5% rise in ADR. Total guest nights also increased by 11percent, while occupancy rates for hotel rooms and hotelapartments increased from 78% to 80%. Hotels in Dubaireported the highest prot levels in the region in 2013

for the fourth consecutive year, according to the latestHotStats survey.


Around 2,780 new four and ve star hotel rooms wereadded to Dubais supply in 2013. Ritz-Carlton extensionon Jumeirah Beach, the Oberoi Dubai, Sotel PalmResort and Spa, Anantara on Palm Jumeriah, ConradHotel, Movenpick Hotel in Jumeirah Lake Towers and

Novotel in Al Barsha were some of t he latest additionsto the Emirates hospitality market. DTCM reported thatthe number of hotel rooms and apartments at the endof 2013 were 84,534 at 611 establishments, compared to

80,414 rooms at 599 establishments in 2012, an increaseof over 5%. Several hotel developments have beenannounced during the period including one in JumeirahBeach Residence, two hotels by Majid Al Futtaim Group,the Dream Hotel in Marina and TRYP by Wyndham inTECOM. More recently, Dubai Properties Group toounveiled plans to build a new waterfront hotel in theJumeirah Beach Residence community. Major openingsscheduled for 2014 include the Four Seasons, SotelSheik Zayed Road, Intercontinental Marina, the secondtower of JW Marriott Marquis and Marriott Al Jadaf.The Dubai Government decided to impose a hotel tax,

which will come into effect from the end of March2014. The new fee will be in addition to the 10%

municipality tax and the 10% service charge. The chargewill vary between Dhs 7 and Dhs 20 per room, pernight, depending on the hotel category and rating. Thehospitality tax is expected to help contribute paymentfor Expo 2020 projects and the promotion of tourismin Dubai, which hopes to attract 20 million visitors by2020. In t he current development pipeline for 2014-2015, there will be an additional 6,724 rooms addedto the market to accommodate the growing demandin the city.

Opportunities

Dubai will continue to boost its tourism and hospitality

sectors. In the coming years, the tourism sectorexpects huge growth. The successful Expo 2020 bidis expected to give an additional boost to the sectorand lead to further hotel developments in 2014 andbeyond. According to Alpen Capitals October 2012GCC Hospitality Industry Report, the UAEs hospitalitymarket is likely to increase to US$7.5 billion by 2016,up from US$4.5 billion in 2011 as visitor demand gainstraction and new hotel supply enhances the existingtourism product.

We expect another two strong years withoccupancies surpassing 80% and edgingcloser towards pre-recession levels. ADRincreases of 4.7% are expected in both2014 and 2015 as beachfront propertiescontinue to demand premium pricing.


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Doha

Role

Doha is the economic centre and capital city of theState of Qatar. It is the largest city in Qatar, with over60% of the nations population residing in Doha or the

surrounding suburbs. Having hosted the 2006 AsianGames, the city is home to many sports complexes as

well. With the country investing heavily in every sectorof the economy, including sports, Qatar is seen as aninvestment hub that is attracting companies from allaround the world to come and be part of the overall

growth of the sports and tourism industry.

2013 Trading

Hotels have recorded 1.3 million visitors in 2013,which is an increase of 8.3% from 2012. Ongoing ratereductions resulting from high levels of competitionhas led to a decline in the ADR during 2012-2013 by almost

20%, which in turn has driven down the RevPAR by 11%.However, considering the extent of supply that came intoDoha during 2013, occupancy levels recovered verystrongly in 2013 with rates of 65.8%, the highest since2009, reflecting the increasing number of leisure visitorsthat the city is attracting.


The new hotels to be completed by 2014 include FourSeasons at The Pearl, Hilton Garden Inn Doha Al Sadd,Pullman West Bay, Kempinski Marsa Malaz and Hotel

Missonu Doha adding over 3,000 additional keys.These hotels will be adding an additional approximately3,200 rooms to the city. Driven by the goal of honouringcommitments related to the FIFA World Cup 2022,Doha is witnessing a massive transformation with majordevelopments in planning or under construction. Thereal estate and infrastructure projects to be completedin the coming years include the Lusail Development,Barwa Commercial Avenue, Doha Festival City, DohaMetro and others which are expected to increasetourism in the city. 4,759 rooms are scheduled forcompletion during the years 2014 and 2015, along withthe addition of 188 apartments, 392 residences and

25 suites.

Opportunities

Doha will be hosting a large number of venues for the2022 FIFA World Cup, which will have a positive impact

from extensive infrastructural initiatives associatedwith the FIFA World Cup preparation.Demand forhotel accommodation is anticipated to increase asmore visitors are expected to visit Doha in the run-upto the FIFA World Cup 2022, Qatar has planned forthe development of several hotels in Doha in the next

number of hotel rooms to 95,000 by 2022 from t hecurrent 15,000. In addition, the new Doha International

Airport due to open in 2014 and the expansion of QatarAirways are likely to positively impact tourism of Doha.

Doha saw a turnaround in occupancies in2013, however high competition drove down

ADRs. We anticipate this trend to changein the next two years with positive growthexpected in both occupancy and ADR, driving

RevPAR growth of 5.2% in 2014 and 5.4%in 2015.


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Jeddah

Role

Jeddah, the second largest city in Saudi Arabia hasemerged as one of the key business destinations inthe region, and arguably the most important leisure

destination in Saudi Arabia. 2012 saw the emergenceof the Jeddah hotel market into a formidable player inthe region, achieving strong growth in performancelevels across all key indicators. Jeddah is advantaged bythe availability of a range of hotel demand generators,attracting a steady ow of corporate and leisure tourists

throughout the year.

2013 Trading

Whilst 2013 saw a fall in occupancy of 4%, strongADR growth drove RevPAR up 6.5%. The growth inaverage rates were attributed to increased demand fromcorporate and segments which comprised 54.5 % of

the market mix in December. RevPAR was propelled bya double digit rise in food and beverage revenues thatexceeded expectations. 2013 demand was also buoyedby events such as the Jeddah International Trade Fair

which attracted 16,000 visitors. The nal quarter of2013 saw a further surge in protability as the Kingdomexperienced a rise in domestic travel, primarily due tosecurity concerns in key travel destinations for Saudissuch as Egypt, Lebanon and Syria.


Hotel supply has been stable during 2013. However,there are a number of upcoming projects that coulddeliver approximately an additional 3,781 rooms in

2014 and 2015. These include the Rocco Forte, NovotelJeddah, Elaf Gallerina on Tahliah Road, the Dusit Thanioverlooking the Obhur Creek, the Park Inn by Radissonand the Ibis Jeddah on Malik Road. These additions willincrease the total hotel room supply in Jeddah to around13,000 quality hotel rooms, an increase of 15% on t hecurrent stock of rooms.

Opportunities

The city is now undergoing massive expansion includingthe US$7 billion expansion of the King AbdulazizInternational Airport and the King Abdullah EconomicCity. Jeddah is likely to be a front-runner in terms of

hotel performance and a target for hotel investors in thenear future.

Following a mixed 2013, the next two yearsare anticipated to be steady in terms ofboth occupancy and ADR growth. Airportexpansion and increasing tourist numbersare predicted to offset increased levels of

supply in the market.


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Muscat

Role

Muscat, the capital of Oman, has arrived as asignicant destination for tourism. Beyond its beaches,frankincense trees, and wadis, the city boasts a more

congenial atmosphere than many Arab states.For a true holiday traveler, there is a lot to explore inMuscat and this is the reason for the growth in Muscatstourism industry. Oman continues to develop as a touristdestination by investing in large scale projects- primarilyin Muscat - which contribute to building the OmanBrand. Muscat is the strongest performing hotel marketin Oman, with occupancy rates exceeding 60% followed

by Musandam and Dhofar.

2013 Trading

As reported by the Ministry of Tourism, Oman welcomed2.1 million tourists in 2013 driving growth of 10% as

compared to 2012. Recent statistics from the NationalCentre for Statistics and Information (NCSI) also showthat there was an 11% increase in revenues of four andve star hotels across the Sultanate in 2013, comparedto 2012 gures. Five-star hotels achieved an increase of60.6% in room occupancy in 2013, up from 55.3% in2012. Four-star hotels achieved a room occupancy rate of56.7%, compared with 54% in the previous year.


Primarily from India, South Asian nationals are thelargest inbound source market to Oman and the ministryhas made efforts to sustain this market by tying up with

tour operators in India. Oman Air recently announcedthe leasing of an additional two Boeing B738 aircraftto boost the frequency and capacity of services toIndia, aiming at twice daily services to all major cities;meanwhile and IndiGo Airlines has launched a 4 time

week schedule from Mumbai to Omans capital.

The outlook for new resorts and hotels in Omanlooks promising with over 3,000 hotel rooms due forcompletion by the end of 2014, with prospects to 2017looking extremely bright.

The new supply is including, but is not limited to:W Muscat, Element Muscat, Ritz-Carlton ReserveMuscat, Rotana Muscat, Copthorne Hotel Muscat andSwiss Belinn Ghubrah Muscat, Somerset PanoramaMuscat, and the recently announced Grand Millenium,the rst Sharia-compliant ve-star hotel in Oman. Atotal of approximately 600 rooms are scheduled forcompletion in 2014 and 2015 to accommodate thegrowing demand. Omans Travel and Tourism GDP isforecasted to increase at an annual growth rate of 6-8%from 2013 to 2017 signifying the rapid anticipateddevelopment of tourism which will be underpinned bythe governments commitment to the industry.

Opportunities

Muscats tourism sector has much to look forward to inthe upcoming years, particularly with the developmentof major projects such as t he Jebel Sifah, Muscat Hills,The Wave and Oman Convention and Exhibition Centre.The expansion of Muscat International Airport willalso result in more hotel development opportunitiesin neighboring cities. The development projects nowin planning or construction stage will put Muscatstourism industry on a new footing. The ministry seesthe upcoming building projects such as airports, Oman

Airs international expansion, fast ferries and improved

communications as the platforms for tourism growth,with local and international investors respondingfavourably.

Economic development and tourist numberswill deliver strong RevPAR growth in both2014 and 2015. However, occupancy growthis anticipated to slow in both years due toincreased level of supply.


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Riyadh

Role

Saudi Arabias capital city, Riyadh, is th e geographic andcultural hub of the country and its largest city. Riyadhhas developed into a dynamic metropolis over the years

and the city has experienced a fairly unique history andcolorful past. Being the political seat of the country,Riyadh primarily receives business visitors from withinthe region and internationally. Riyadh has grown bothculturally and commercially over the years and becomea focal point for both travel and trade. The hotel industryin Saudi Arabia is growing at a positive pace, with thesector experiencing signicant investment due to theKingdoms economic stability. This provides a safe havenfor investments. Additionally, t he occupancy rates reach100% during specic periods of the year and an average

of up to 75% throughout the year, especially in Riyadh.

2013 TradingOccupany levels declined signicantly from t heir peakof 71% in 2008 to 56% in 2013. ADR has remainedlargely unchanged when compared to the same periodof 2012, while RevPAR saw a declined by 1% from 2012.This is mainly attributed to t he signicant increase insupply recorded in 2011 and 2012.


Hotel supply has been relatively stable in 2013, and theopening of Holiday Inn Meydan, Park Inn by Radissionand Kempinski Burj Rafal (one of t he tallest buildings in

Riyadh) which have added a further 464 rooms to themarket. With the Kingdoms hospitality sector growingat an annual rate over 8.5%, 20% of 155 new hotels(delivering approximately 7,308 additional rooms) areexpected to open in Riyadh during 2014-2015;theseopenings include Regency and Fairmont Business Gate.

Opportunities

The government is making signicant investments toincrease business and tourism, including plans of airportdevelopments to boost overall passenger capacity.

Along with that, the Kingdom is investing in large-scalerailway developments to realize its potential as a leading

global transport and logistics hub. These investments ininfrastructure are likely to boost the tourism industry inRiyadh, which will directly have a positive impact on th ehotel values.

We anticipate Riyadh will continue to havemixed fortunes in 2014 and 2015, with

strong growth in occupancy offset by negativeADR growth, dampening RevPAR gainsto 3.5% in 2014 and 3.4% in 2015.


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About the survey, methodologyand model assumptions


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Data

Our hotels dataset provided by STR Globalcontains ADR, hotel room supply, demandand occupancy on a monthly basis for eachof the six cities. Macroeconomic variablessuch as GDP growth, oil prices andConsumer Price Indices (CPI) were obtained

from the IMF for the four countries.

Econometric model

We developed a 2-stage least squares (2SLS)instrumental variables approach that modelshotel demand and price (ADR) using a two-stage process. This process avoids circularityamong variables that may lead to technicallyinconsistent estimates. Further, by using

panel modelling techniques, our modelaims to capture similarities in the marketwhere possible.

This is consistent with the modellingapproach we used for the European hotelsforecast published in March 2014 (Room togrow - European cities hotel forecasts for2014 and 2015).

Forecasts

Forecasts for ADR growth and hotel demandwere generated using IMF forecasts ofmacroeconomic variables, supplementedby additional forecast data for hotel supplybased on country-level pipeline dataprovided by STR Global.

Allowance was made for attrition in theexisting supply stock and pipeline based on

historic trends and local expectations.RevPAR forecasts were constructed usingADR, demand and supply forecasts. Thismodel was used to generate forecaststhrough to 2015.

Methodology for the hotel forecasts

This section outlines in more detail the PwC models used to forecast hotel occupancy, Average Daily Rate

(ADR) and Revenue Per Available Room (RevPAR) for six Middle Eastern cities.


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Appendices


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Further reading

Global reports, availableat the following link

www.pwc.com/hospitality

Room to grow: European citieshotel forecast

Our agship publication for Europeshospitality and leisure industry. Providesforecasts of occupancy and hotel revenuesand analysis of key trends for the hotelssector in 18 key gateway cities fromAmsterdam to Zurich.

Emerging Trends in RealEstate Europe

A joint undertaking of the Urban LandInstitute and PwC, the Emerging Trendsin Real Estate series provides an outlookon real estate investment and developmenttrends, real estate nance and capitalmarkets, trends by property sectorand metropolitan area, and other realestate issues.

UK Hotels Forecast

Our agship publication for the UKhospitality and leisure industry. Provides

forecasts of occupancy and hotel revenuesand analysis of key trends for the UKhotels sector.

Hospitality Directions US

Quarterly outlook for the US lodging sectorproviding our forecast for occupancy andhotel revenues and analysis of key issuesimpacting the US industry.

South African Hospitality Outlook

PwCs team of hospitality specialists providean unbiased overview of how the hospitality

industry in South Africa is expected todevelop over the coming years.

MarketVision of the hospitalitysector in Italy

This report provides an overview of pastperformance trends for the Italian hospitalitysector with an analysis of future drivers andprospects in 2015. It includes market trenddata for Milan, Rome, Venice, Florenceand Naples.

How can hotels achieve theright kind of growth in a digitalage? A toolkit for ghtingcommoditisation

Brands, hotel owners and operators that

are able to capitalise on social media,mobile, analytics and cloud (SMAC) andput customer experience at the heart ofeverything they do can gain signicantcompetitive advantage in the longer run.

OHE (Observatorio de la Industria

Hotelera Espaola) SpainA report by PwC Spain and CEHAT,with the macro-economic forecast andthe sector perspectives on each of the maintourism seasons.

Middle East reports, availableat the following link

www.pwc.com/meCities of opportunity 2012

PwCs global thought leadership publication.In the fth edition of Cities of Opportunity,PwC and the Partnership for New YorkCity again examine the current social andeconomic performance of the worldsleading cities.

Mega Trends

Global Annual Review, looks at issues thatimpact our stakeholders around the world,and examines our performance, our keynetwork policies and standards, and ourwork in the global community duringFY 2013.

PwCs Global Economy Watch

Beyond oil: Outlook for the gulf economiesThe UK agship thought leadershippublication looks at how in past decade theseven largest emerging market economies(the E7) have been monopolising thespotlight and why the Gulf Cooperation

Council (GCC) countries deserve moreattention from global business than theyare currently receiving.

Total Impact Measurement andManagement

Total Impact Measurement andManagement explores why business needstotal impact measurement, how to do i t andthe benets of embedding it into decisionmaking. It also showcases a framework wevedeveloped with our clients to provide thetotal perspective on business impact.

Delivering Middle Easts MegaProjects

The rst Middle East Mega Projects surveytakes the temperature of the Capital Projectsmarket in the region, to understand the

challenges the people who live and breathecapital projects are facing and what theyintend to do about them, and to get theirinsight into the opportunities ahead.


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Contacts

Middle EastViren LodhiaHospitality & LeisurePartnerT: +971 (4) 3043323E: [email protected]

Alison CashmoreHospitality & LeisureDirectorT: +971 (4) 3043916E: [email protected]

Mohammad DahmashReal Estate, Hospitality & LeisurePartnerT: +971 (4) 3043343E: [email protected]

Hazem GalalGlobal Cities & Local Government

PartnerT: +974 4419 2777El: [email protected]

Stephen AndersonCapital Project and Infrastructure

PartnerT: +974 4419 2850E:[email protected]

Martin BerlinDeals StrategyPartnerT: +971 (4) 3043182E:[email protected]

Osman BabarHospitalitySenior ManagerT: +971 (4) 3043068E: [email protected]

Vikram Loomba

DirectorHospitality Advisory

T: +971 (0) 4 304 3453E: [email protected]

SwitzerlandNicolas Mayer

Partner & Industry Leader Lodging & Tourism ClientsT: +41 0 58 792 2191E: [email protected]

USScott D. Berman

Principal and US Industry Leader,Hospitality & LeisureT: +1 (305) 375 621 1E: [email protected]

UKLiz Hall

Head of Hospitality & LeisureResearchT: +44 020 7213 4995

E: l [email protected]

Richard SnookEconomistT: +44 020 7212 1195E: [email protected]

Sam WardHotels LeaderT: +44 020 7212 2974E: [email protected]

Hospitality & Leisure LeaderT: +44 020 7804 6397

E: [email protected]

Craig HughesUK & Global Sovereign Wealth

Fund & UK Real Estate LeaderT: +44 0) 20 7212 4183E: [email protected]

About PwC

PwC provides industry-focused assurance, tax,deals and consulting services to the hotel industry.

We also deliver a fully integrated service at every

stage of the deal process, from origination to postinvestment appraisal. In a rapidly changing worldadapting to the digitally demanding and mobile

savvy consumer, were renowned for our forwardlooking in depth research and insights.

PwC helps organisations and individuals create the

157 countries with more than 184,000 people whoare committed to delivering quality in assurance, tax

and advisory services. Tell us what matters to you

Established in the Middle East for 40 years, PwC

Lebanon, Libya, Oman, the Palestinian territories,Qatar, Saudi Arabia and the United Arab Emirates,

with over 3,000 people. For more informationplease visit www.pwc.com/me

PwC refers to the PwC network and/or one or more

legal entity. Please see www.pwc.com/structure forfurther details.


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www.pwc.com/meThis content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.

2014 PwC. All rights reserved.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.

CDC 687 (4/2014)

middle east hotels report

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