The document summarizes a survey of hotel development pipelines in five major Gulf markets - Abu Dhabi, Dubai, Doha, Makkah, and Riyadh. It found that these markets will see 189 new chain hotels with 64,063 rooms by 2017. Dubai will have the largest number of new rooms at 20,227, followed by Makkah at 15,981 rooms. The majority of new rooms, around 70%, will be rated five-star. It also provides highlights for each individual market, noting trends like increased upscale brands in Abu Dhabi, the rise of hotel condo apartments in Dubai, and growth of new international brands in Doha.

1. HOTELIER MIDDLE EAST | September 2013 | Volume 12 Issue 09
STRATEGY
56
Viability Management Consultants’ latest pipeline survey focused on the five ‘hot
markets’ for hotel development in the Gulf — Abu Dhabi, Dubai, Doha, Makkah and
Riyadh — and revealed fast-paced growth, the emergence of exciting new brands
and mammoth master projects
Dubai Pearl will introduce brands such as Bellagio and MGM.
Millennium Bab Al Qasr, Abu Dhabi.
Some 70% of the pipeline keys will be rated
five-star, 23% four-star and just 7%, three-star”
Beyond the supply confirmed by
the chains, Abu Dhabi has numerous
exciting new tourist and downtown
areas that should see scores more ho-
tels coming up in the medium term,
both on its natural offshore islands
and in mainland suburbs. Among
the former are the sizeable Saadiyat,
Reem, Al Maryah, Yas and Lulu is-
In terms of geographical distribution, the largest slice of the pie
predictably went to Dubai, with the chains reporting that 31%
of their future pipeline, or 20,227 keys in 56 hotels and hotel
residences, would be located there. Next was Makkah, with
15,981 keys in just 25, larger-than-average properties, repre-
senting 25% of the pipeline. The rest of the five-city pie was
divided between Abu Dhabi, Doha and Riyadh, with 17%, 14%
and 13% of the total keys respectively (see chart on page 60).
According to the chains, we should see around 15,000 keys
coming on line each year from 2013 to 2016, with just under
4000 known at this stage for 2017. Some 70% of the pipeline
keys will be rated five-star, 23% four-star and just 7%, three-
star. Hilton Worldwide reported the largest number of keys in
the five cities, at 8211, followed some way behind by Starwood,
with 5161; Millennium (4636); Marriott (4535); and Accor
(3530). There were several unexpected newcomers in the top
20, including Damac, Anjum and Elaf.
ABU DHABI MOVES UPSCALE
With 36 confirmed chain hotel projects promising 10,745 fu-
ture keys, Abu Dhabi continues to be a focus for local hero,
BOOMTIMESRETURNTOTHEGULF
B y G u y Wi l k i n s o n
MARKET
UPDATE
Rotana, which is adding four new ho-
tels to its existing 11 properties there.
Marriott is also planning four, includ-
ing the region’s first Edition hotel, a
concept created with boutique hotel
pioneer Ian Schrager. Millennium &
Copthorne and Mövenpick will each
open three new hotels in the city.
The UAE capital has become
something of a lure for upper upscale
brands. Over the coming years, Four
Seasons will become a neighbour to
the newly-opened Rosewood on Al
Maryah Island, while Millennium &
Copthorne Middle East will open the
spectacular 674-key Millennium Bab
Al Qasr next to the Etihad Towers
and a Biltmore hotel in Al Buteen —
the second to be so named after the
original in Los Angeles. Abu Dhabi
now has its second St. Regis and is
set to get its first W hotel, following
Starwood’s deployment of this brand
in Doha. Perhaps most impressive
will be the second Fairmont hotel in
the UAE capital, a grand Arabic-style
edifice destined to become a major
landmark on the Breakwater near
the Marina Mall, with 812 keys.
I
n April and May of this year, Viability Management Consultants canvassed 111 hotel chains active in the Middle East, 49 — or
44% — of which confirmed they were planning to open new hotels. In total, these operators will be opening 189 hotels and hotel
apartment buildings with 64,063 keys across the five subject cities between now and 2017. By comparison, the pipeline for the
entire GCC market — including Jeddah, Al Khobar, Kuwait, Manama, Muscat, Salalah and other important cities — totalled 199
hotels in 2007, rising to a peak of 325 in 2009. One key difference in this year’s survey methodology was that for the first time
this year we included branded hotel apartments.

2. STRATEGY
HOTELIER MIDDLE EAST | September 2013 | Volume 12 Issue 09 57
Perhaps most impressive will be the
second Fairmont hotel in the UAE capital,
a grand Arabic-style edifice destined to become
a major landmark on the Breakwater near the
Marina Mall, with 812 keys”
lands, as well as the smaller, exclusive Nurai and Nareel islands. Main-
land districts include Al Raha Beach, the ‘green’ Masdar City, Ghan-
toot Green City and the Capital District, a long-term project to create
a major new CBD in Khalifa City.
DUBAI CASHES IN ON CONDO APARTMENTS
As the region’s main focus for pipeline activity, Dubai is also the cruci-
ble of innovation in terms of lodging product, with condo apartments
— serviced (hotel) apartments that are individually available for sale
freehold to all comers — rapidly emerging as an exciting new focus. Da-
mac, known throughout the region for its freehold residential towers,
has entered the transient lodging sector with four new condo apart-
ment projects next to the Burj Khalifa. One of these, the 1940-unit
Damac Towers by Paramount will feature management by Paramount
Hotels & Resorts, a new chain established under licence in Dubai.
Expect many more Damac condo units in Dubai and beyond. The Ad-
dress Hotels + Resorts, pioneers of the concept in the region, is also
launching four condo apartment towers next to the Burj, in addition to
the launch of new boutique brand, Vida.
The future Viceroy Hotel on The Palm is also selling its rooms con-
do-style. Other brands planned for conventional resorts on The Palm
include Hilton, Kempinski, Sofitel (now open), W and Waldorf Asto-
ria. Facing the Palm, the Pearl of Dubai project continues on its gradual
path to fruition, promising new-to-market brands Baccarat, Belaggio,
MGM and Skylofts. Elsewhere in the city will be a beach resort by Four
Seasons on Jumeirah Beach Road and urban properties by Conrad,
Rosewood and St. Regis, plus a third Sofitel and another W. The Palaz-
zo Versace is 80% complete on Dubai Creek, while the second, 804-
room tower of the JW Marriott Marquis opens by 2015.
Startling announcements by the Dubai government over the last few
months have raised hopes of major new hotel districts emerging in the
InterContinental Dubai Marina is expected to open by the end of 2013.

3. HOTELIER MIDDLE EAST | September 2013 | Volume 12 Issue 09
STRATEGY
58
medium term, such as Mohammed bin Rashid City, in
which 100 new hotels and the world’s largest mall are
envisaged. Even projects thought to have received the
coup de gras at the onset of recession have now expe-
rienced major revival, from Business Bay to Jumeirah
Lake Towers and from Dubailand to Jebel Ali.
DOHA TURNS ON THE STYLE
Boasting a chain hotel pipeline of 8903 keys in 33 fu-
ture properties, the Qatari capital is stealing the march
even on Dubai in terms of trendy new-to-the-region
brands. These include perhaps most excitingly, the
Mondrian Doha, a brand of Morgans Hotels Group, the
Startling announcements by
the Dubai government over the
last few months have raised hopes of
major new hotel districts emerging
in the medium term, such as
Mohammed bin Rashid City, in which
100 new hotels are envisaged”
Cityperformancecompari-
sonQ12013(occupancy%)
0
20
40
60
80
100
AbuDhabi
Doha
Dubai
Riyadh
Makkah
Jafza Convention Centre in Dubai will house
an office complex, a hotel and a food court.
New York-based lifestyle hotel specialists
originally founded by boutique hotel pio-
neer Ian Schrager, in the 1980s. The uber-
hip property will be in the West Bay lagoon
area, where future neighbours will include a
Waldorf Astoria, a Pullman and yet a third
property from the Grand Heritage chain.
A little further north, local owner-operator
Katara is planning the 614-key Lusail Ma-
rina Iconic Towers, which, if the artist’s
impression is accurate, are more than aptly
named. Qatari Diar’s Lusail district is even-
tually expected to house 22 hotels.

4. STRATEGY
HOTELIER MIDDLE EAST | September 2013 | Volume 12 Issue 09 59
Super-exclusive Mandarin Oriental will
debut its first Gulf property in the styl-
ish Musheirib urban regeneration project
near the Corniche, as will Accor’s M Gal-
lery lifestyle brand. The same area will also
feature a new Park Hyatt and an elegant
Shaza hotel featuring contemporary Ara-
bian architecture.
The second Missoni in the region will
open on Doha’s C Ring Road, while the
Capella chain, established by former Ritz-
Carlton renegades, will manage a hotel
at Education City under the Solis brand.
Boasting a chain hotel
pipeline of 8903 keys
in 33 future properties, the
Qatari capital is stealing
the march even on Dubai in
terms of trendy new-to-the-
region brands”
Plans for Mohammed Bin Rashid City, Dubai. Radisson Blu Hotel, Riyadh Ring Road will open in Q1 2015.
Anantara, meanwhile, will manage a well-
ness-themed resort located on a private
island off the coast.
Qatar promised FIFA it would add
80,000 keys to its transient lodging in-
ventory before the 2022 World Cup, so
there are no holds barred on development.
Barwa’s US$5.5 billion Oryx Island project
— one of many planned by the mega developer — will
answer this call by including jetties for five floating ho-
tels to house 25,000 soccer fans. But the football tour-
nament is far from the only impetus to building hotels
as Qatar’s gas-fired economy continues to underpin
major urban expansion, with real estate projects from
Doha Festival City to Wa’ab City all containing impor-
tant hospitality components.

5. HOTELIER MIDDLE EAST | September 2013 | Volume 12 Issue 09
STRATEGY
60
MAKKAH, A MEGA HOTEL
METROPOLIS IN SAUDI ARABIA
With 3.1 million Hajj visitors in 2012 and a
leap to 17 million projected by 2025, Mak-
kah continues to increase in importance
as one of the world’s top religious tour-
ism destinations. In response to this rapid
growth, the Jabal Omar development, lo-
cated on 2.2km2
of prime land overlooking
the Holy Mosque, will create no less than
38 hotels containing 13,500 rooms and
34,000 beds, with a peak season capacity
for 100,000 pilgrims.
According to the Jabal Omar Develop-
ment Co, some 28 operators have been
signed up to manage the hotels, with four
top global chains already having reported
almost 8000 keys between them: Hilton
(3862), Hyatt (1028), Marriott (1611) and
Starwood (1,496). This represents half the
entire future pipeline in Makkah.
Hilton will open six hotels in the Jabal
Omar development; four Hiltons, a Con-
rad and a Doubletree. Hyatt is planning a
Hyatt Regency, a Hyatt Place (residential
style units) and a mid-market Hyatt House
(this brand was formerly known as Sum-
merfield Suites). Marriott is deploying its
complementary JW Marriott, core brand
Marriott and Courtyard by Marriott arse-
nal, while Starwood’s equivalent move is to
According to the Jabal Omar Development Co, some 28 operators
have been signed up to manage the hotels, with four top global
chains already having reported almost 8000 keys between them”
Doha
Dubai
Riyadh
AbuDhabi
Makkah
CITY 2014
2015
2017
2013
2016
YEAR
Roomdistribution
5*
STAR RATING
3*
4*
Thereare189chainpropertieswith64,063keysopeninginthefive
citiesby2017,withthekeysdistributedasfollows:
Lusail Marina Iconic Development in Qatar.
Sofitel Riyadh is due to open in 2015.
0
3000
6000
9000
12000
15000
HiltonWorldwide
Mövenpick
IHG
FairmontRaffles
Starwood
Rotana
AnjumHotels
Kempinski
Millennium
Damac
Hyatt
Elaf
Accor
BestWestern
Rezidor
Formosa
Others
Marriott
TheAddress
Wyndham
Katara
Chainrankingbypipelinekeysinthefivecitiescombined
31%
14%
17%
13% 23%
23%
6% 7%
21%
25%
70%
25%
25%

6. STRATEGY
HOTELIER MIDDLE EAST | September 2013 | Volume 12 Issue 09 61
Hilton Worldwide is
developing no less than
seven new hotels with 1450 keys
in Riyadh comprising two core-
brand Hiltons, three Doubletrees
and two Hilton Garden Inns”
propose a Westin, a Sheraton and a Four Points. Mil-
lennium has no confirmed Jabal Omar hotels yet, but
has announced the no less impressive, 1400-key Umm
Al Qurah Hotel and the Copthorne Hotel Nobola Mak-
kah (756 units). Best Western is also opening two new
properties in Makkah, including the 1200-key Best
Western Bougary Hotel.
There are several other major hospitality
developments in town, not least the Abdul Latif Jameel
Real Estate Co’s Jabal Al Kaaba project, where a 1743-
key hotel will be the first of 8500 keys planned by the
developer under its own new Anjum brand. The 1.5km2
King Abdul Aziz Endowment (Dokaee) project will
also feature hotels and hotel apartments.
RIYADH – MOVING FROM UNDER-
TO OVER-SUPPLY?
With a population of more than five mil-
lion, Riyadh is easily the Gulf’s largest me-
tropolis. Yet it has historically languished
behind other cities in the region in devel-
oping a broad base of international and re-
gional chain hotels. This is about to change,
as 39 chain properties with 8207 keys have
been confirmed through our survey. These
figures compare to an existing inventory in
the Kingdom’s entire Central Province, in-
cluding Riyadh and other towns, of 60 ho-
tels with 9105 rooms and 276 mostly infor-
mal ‘furnished apartments’ with 7226 keys,
as per the Saudi Commission for Tourism
and Antiquities.
Riyadh’s key project currently is the
King Abdullah Financial District (KAFD),
which will eventually offer 80 towers and
three million m2
of floor space for financial
companies,afewminutesdrivenorthofthe
central Olaya district on King Fahd Road.
Part and parcel of the elegantly designed
project are its hotels, which will include
the city’s second InterContinental and the
region’s first Hotel Indigo (Intercon’s bou-
tique brand), as well as a Grand Wyndham,
a Doubletree and a Hilton Garden Inn.
Hilton Worldwide is developing no less
than seven new hotels with 1450 keys in
the city, comprising two core-brand Hil-
tons, three Doubletrees and two Hilton
Garden Inns.
InterContinental’s four projects in Ri-
yadh additionally include a Crowne Plaza
at the ITCC (Information Technology
Communications Complex, a ‘smart city’
project similar in approach to Dubai’s In-
ternet City) and a Holiday Inn. Rezidor’s
Riyadh pipeline comprises two Radisson
Blus and a Park Inn.
A number of other operators are plan-
ning more than one property, including Ac-
cor (Sofitel and Suite Novotel), Best West-
ern, Cristal, Hyatt (Hyatt Regency and
Park Hyatt), Marriott (two Courtyards),
MENA, Millennium and Rotana (Centro
and Rayhaan). Other mega projects such
as Prince Alwaleed’s 16 square kilometre
Riyadh Land promise many more hotel de-
velopment opportunities.