The Q1 2025 Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE) shows sustained growth in the Middle East’s hospitality development sector. As of the end of Q1, the region’s hotel construction pipeline stands at 634 projects totaling 158,656 rooms, reflecting a 4% increase in projects and a 10% increase in rooms year-over-year (YOY).
Key Pipeline Metrics
Under Construction: 327 projects / 84,434 rooms
(↑ 8% in projects, ↑ 5% in rooms YOY)
Scheduled to Start in Next 12 Months: 158 projects / 47,201 rooms
(↑ 19% in projects, ↑ 55% in rooms YOY)
Early Planning Stage: 149 projects / 27,021 rooms
New Activity Highlights
New Project Announcements: 41 projects / 9,068 rooms
New Construction Starts: 39 projects / 6,910 rooms
(↑ 63% in projects, ↑ 21% in rooms YOY)
Chain Scale Highlights
The luxury and upper upscale segments continue to dominate the pipeline:
Luxury Chain Scale: 185 projects / 42,268 rooms (record high)
Upper Upscale Chain Scale: 153 projects / 37,946 rooms (record high)
Combined, these two segments represent 54% of all pipeline projects and 55% of total rooms, underscoring the region’s focus on premium hospitality offerings.
Additionally, brand conversions hit a new peak, reaching 55 projects with 12,436 rooms, signaling growing interest in repositioning existing assets under global or regional brands.
