Global hospitality brands boost investments in MEA
dubai — The Middle East and Africa (MEA) region will continue to present opportunities for global hospitality companies, with both Marriott International and Hilton announcing plans to expand their hotel portfolios in the region over the next few years.
Marriott International revealed that it expects to add 19 new properties and more than 3,000 rooms to its MEA portfolio in 2019. This is in line with the company’s expansion plans to add more than 100 new properties and nearly 26,000 rooms across the region by the end of 2023. Marriott estimates its development pipeline through 2023 represents up to $8 billion of investment from property owners and is expected to generate over 20,000 new jobs across the region.
“Our growth across the Middle East and Africa is fuelled by a strong demand for our diverse range of well-established brands, each offering different attributes that cater to this region’s ever changing and evolving marketplace,” said Jerome Briet, chief development officer, Middle East & Africa, Marriott International. “This region continues to present us with opportunities to further grow and enhance our portfolio across new and established markets. While the majority of our growth will be through new-builds, we are seeing an increasing number of conversion opportunities, especially in the luxury space.”
Year-to-date, the company has opened five new properties in the region and is expected to add 14 more — bringing its portfolio across the Middle East and Africa to nearly 270 properties and over 60,000 rooms — by the end of the year.
Meanwhile, Hilton has announced that it expects to open almost 100 hotels in the region in the next five years, mainly in the UAE, Saudi Arabia, Kuwait, Bahrain, Morocco, and Egypt, equating to a $9 billion investment by Hilton’s development partners. This will see the company almost double in size in the UAE, and quadruple in size in Saudi Arabia throughout the next five years, bringing Hilton’s portfolio to almost 50 hotels in each of these key markets.
Patrick Fitzgibbon, senior vice president of Development EMEA at Hilton, said: “As Hilton enters its 100th year, we have almost 30,000 rooms in our Middle East and North Africa (Mena) pipeline and have recently announced deals that will see us introduce our lifestyle brand Canopy by Hilton to KSA, as well as Embassy Suites by Hilton to the region. The addition of 100 hotels will create genuine value for the economy with some 25,000 new jobs across these hotels as they open in the coming years.”
Hilton has seen significant demand in the Mena region for its mid-market brands, including Hilton Garden Inn and Hampton by Hilton, with 25 hotels representing these two brands in its existing development pipeline. In addition to this, Hilton will open a Waldorf Astoria in Dubai later this year, and will continue to grow its strong presence in Ras Al Khaimah with three new properties in its pipeline for the emirate. Hilton currently operates 64 hotels across the Mena region and expects to see continued demand for its brands. File photo > Marriott revealed that it expects to add 19 new properties and more than 3,000 rooms to its MEA portfolio in 2019.
> Marriott estimates its development pipeline through 2023 represents up to $8 billion of investment from property owners.
> Hilton has announced that it expects to open almost 100 hotels in the region in the next five years.
> Hilton has seen significant demand in the Mena region for its mid-market brands.
Our growth across the MEA is fuelled by a strong demand for our diverse range of well-established brands Jerome Briet, chief development officer, MEA, Marriott International