A new report by Alpen Capital reveals ‘immense growth potential’ of the regional hospitality industry, despite a slowdown in 2016.
A report by Alpen Capital, an investment banking advisory firm, indicates the GCC hospitality market is expected to grow at a 7.6% CAGR from an estimated US$25.4 billion (AED93.3 billion) in 2015 to US$36.7 billion (AED 134.8 billion) in 2020.
Occupancy rates at hotels and serviced apartments are anticipated to grow by 3% to 70%, and ADR is likely to increase at a 1.4% annualised rate during the period.
As a result, RevPAR of hotels and serviced apartments in the GCC is projected to grow at a CAGR of 2.3% to $133 (AED 488) by 2020.
Hospitality markets of Qatar and the UAE are expected to demonstrate the fastest annualised growth of over 10%, from 2015 to 2020.
Remaining GCC nations are likely to register growth in the range of 5% to 6%, below the regional average.
