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    Colliers Market Report MENA

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    8 views8 pages

    Colliers MENA Q4

    Uploaded by

    Abdellah Essonni
    Colliers Market Report MENA

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 8
    Quarterly Review NV NW Colca Full Year 2017 WISNWOION=an == lo; Hotels | Full Year cA | Full-Year 2017 | Hotels Riyadh Jeddah Dammam/Khobar Makkah Madinah Duba Abu Dhabi Sharjah Ras Al Khaimah Fujeirah Sharm El Sheikh Hurghada COLLIERS QUARTERLY UPDAT Ain Dubai, the world’s largest ferris wheel is nearing completion. Muscat's new international airport is expected to open in 2018. Saudi Arabia announced the Red Sea tourism project in 2017 (encompassing 50 islands). Few moments later NEOM was announced, a USD 500 bn special zone spanning KSA, Egypt and Jordan, The list goes on. The region is investing in its long term sustainability and success. Mi From 1 to 2.5 million Chinese Tourists in 5 Years There were 1.0 million Chinese tourist arrivals to the GCC in 2016. Chinese arrivals to the GCC are expected to grow by 20% annually until 2021 to reach 2.5 milion tourists; this is partly due to the loosening of visa rules for Chinese tourists in the UAE, Bahrain and Oman, Softening Hotel Performance in 2018 2018 is expected to be a year of relatively stable hotel performance, following a significant drop in performance in 2016 and a softening in 2017. In 2018, hoteliers will attract new demand to increase occupancy rates, while streamlining costs will be on top of many agendas cll Where to go in 2018: Saudi Arabia The Financial Times included Saudi Arabia in their insiders’ guide on “where to go in 2018". In addition to its existing scenic and cultural sites, KSA is also investing in future mega-developments and resort destinations. The first tourist visas will be issued in 2018 Middle Eastern Culture & Nature High on Wish Lists man’s sites are widely known, such as Jabal Akhdar, Niz and Ras Al Jinz Turtle Reserve. Sauci's Mada'in Saleh and Historical Diriyah, The UAE is introducing the world's longest Zipline in Jebel Jais. We expect increased development, restorations and tourist routes to take advantage of the region's natural and cultural assets. 3. Middle East & North Africa Quarterly Review | FullVear 2017 | Hotels |Colirs international KINGDOM OF SAUDI ARABIA In 2017, hotel room supply in the Kingdom increased by 13% compared to 2016, Makkah witnessed majority of hotel openings, accounting for approximately 3,800 keys, ie. 73% of the Kingdom's new supply in 2017. Hotel Supply (No. of Branded Hotel Keys) Highlights 85200 Madinah was the only market to experience ‘an increase in occupancy levels in 2017, 72.000 partly due to lack of hotel openings in 2017. 55800 Increased visa quotas for pilgrims resulted in the number of Hal pilgrims to grow from 4200 1.9 milion (2016) to 2.4 million (2017), an increase of approximately 26%. Jeddah saw the opening of Ritz Carlton. = — = = ‘Announcement of the implementation of a420I6 = 42017 FY 2018 Fy20I9 FY 2020 tourist visas in the Kingdom starting from 2018. 33000 Riyadh mJeddah ml Dammam/Khobar mi Makkah = Madinah Note: nudes only branded hotel spo takes into account potential canceliatons and delays Key Performance Indicators (Year-on-Year Change) Outlook FY 205 FY 2016 FYZ0N FY 2018 Large amount of new hotel supply to enter Riyadh the market over the next 3 years, However, San based on historical trends, 20-30% of the Seeupency future supply is expected to be delayed by Change) — " atleast 1 to 2 years. waa Implementation of tourist visas is expected to atiract more visitors to the Kingdom. This Riyadh could result in increased leisure tourism, as aoe eh international travelers would get an Darar/khobar ‘opportunity to visit historical places Change (8) Tah (UNESCO Heritage Sites) within the country Voanay for the first time. Legend A % ncrease vs. Last oar © % Decrease vs. Last Year ‘Guest Experience Index (GED scores provide an indeator for hotel guests’ genera perceptions ofa hates ‘quality, based on data from online guest reviews. Sores ‘re ona scale fram 110 100 ‘wath 100 being the perfect top score). for November 2017 4. Middle East & North Africa Quarterly Review | Ful-Year 2017 | Hotels |Coliers International UNITED ARAB EMIRATES The UAE witnessed approximately 6,000 branded hotel keys open in 2017, 78% of which in Dubai and 10% in Abu Dhabi. Both Emirates retain the lion's share of tourist arrivals; while the northern Emirates are rapidly evolving as an alternative and more affordable option. Re AN MR noe) 105 000 90600 77700 a4 = aa2o17,=—Fv2018 «= FY.2019 «= FY2020 Dubai MAbu Dhabi mSharjch m Ras ALKhsimah = Fujairah DON ead eee ee gD sry 201 Fv 2OTT F208 Dabs 2%) 1% cco BD OK 15% Sharh Change (%) =A ___"*_7*_*""5_"*__ Ras Al Khaimah 2 73% 2% oq Boa Drab 6 a 4 in 0% Change (6) Sbaieh __ Tpit 3h Ras Al Khaimah 7 Fu 3% Legend 4 Snes vs. Lost ou #5 Decrease Last Yeo Guest Experience index (GE! ceptions ofa hates ‘Abu Drabi 5 Middle East & North Africa Quarterly Review | Full-Year 2017 | Hotels | Colirs International Highlights In 2017, hotel markets in the UAE saw the return of key source markets such as Russia (estimated 98% growth in arrivals to Dubai in 207 1 India is accelerating forward as a mega source market to the UAE, Indian visitors. increased to an estimated 2.3 million tourists in 2017 from 2.1 milion in 2016, China as a source market to the UAE is still in early stages, but is on a fast growih >. Chinese arrivals grew by double digit in 2017 following the introduction of visa- on-arrival started in November 2016. Outlook AILUAE markets are expected to see a similar trend in 2018. Occupancy rates are expected to increase due to strong growth in demand while increased competition from new hotels will result in a slight rate compressing effect. Streamlining costs will be on top of many agendas. The leisure demand is expected to further increase with the introduction of new anchors such as La Mer, Dubai Safari Park, Dubai Frame, World's longest zipline (Jebel Jai in Ras Al Khaimah) and Warner Bros World Abu Dhabi EGYPT 2017 was an interesting year as Egyptian hotels achieved occupancy levels mirroring pre-2010 levels. Although the average daily rate (ADR) increased substantially due to the devaluation of the Egyptian Pound, markets saw a slight dip in USD terms versus last year. Hotel Supply (No. of Branded Hotel Keys) Highlights 23400 85000 ‘Supply growth in Egypt remained stagnant in Q4 2017 when compared with the same period in 2016, Despite that, the adjacent ‘raph indicates a 2% growth in Cairo hotel oor supply due to the reopening of the Sheraton Hotel Cairo & Casino; which started refurbishment in 2015, 78,400 78,800 51300 ‘The state-backed hotel operator Tolip Hotels is expected to roll out across the ration in the near future. The brand which made its debut in 2015 with the opening of Deze oso Fy 201 v0} FY 2000 the Tolip Heliopolis is expected to open a new hotel in New Cairo and lsmailia in Ciro mAlexandria ml Shorm El Sheith Bt Hurghada 2018. Odea Meat ame) Outlook Fa e020 OT Red Sea resorts recorded the strongest Cairo 2k ‘ccupancy growth in 2017 off the back of a cc TT drop in 2016, Occupancy levels are Occupancy Alexandria oe ON ‘expected to further increase in 2018 as Change (6) “Sharm El Shalth ee more travel bans from key source markets are lifted in 1 2018, 14% 4% Cairo ADR “Alexandria Change (%) “Sharm El Sheikh da Hotel average daily rates (ADR) saw double

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