A Signature Media Publication

UAE and KSA continue to lead GCC luxury hospitality market


The UAE will continue to lead the GCC’s luxury hospitality segment to 2022, with 73% of existing luxury hotel stock and 61% of the region’s current luxury pipeline located in the country, according to research data for the forthcoming Arabian Travel Market 2018.

The research demonstrates that luxury properties have increased three-fold in the GCC in just 10 years, with 95% 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 significant increase in luxury hotel supply to 2022, with a Compound Annual Growth Rate (CAGR) of 18% from 2018 onwards. Across the rest of the GCC, this figure stands at 10% in the UAE, 11% in Oman and Kuwait, and 9% in Bahrain.

Historically, Saudi Arabia dominates CAGR trends, with luxury property development from 2013 – 2017 accounting for 11% of the Kingdom’s growth in supply, compared to 8% in the UAE, 7% in Kuwait, 6% in Oman and 5% in Bahrain.

In 2017, the UAE topped the table, with 35% of the year’s pipeline made up of luxury projects; most concentrated in Dubai. This compares to 14% of projects in Saudi Arabia, 20% in Kuwait, 19% in Bahrain and 11% in Oman.

Today, highlights of the GCC’s luxury hotel stock of 69,396 rooms include St. Regis; Palazzo Versace; Bulgari; Armani and Raffles.