Hotel revenues in the Gulf Cooperation Council (GCC) are expected to rise by 11% per year to reach $22bn by 2012 and $27bn by 2015, according to a forecast by Alpen Capital.
The Alpen Capital GCC Hospitality Industry Report predicts that the UAE and Saudi Arabia will continue to be the two largest markets in the region with a combined share of 89%.
According to the report, the annual revenue per available room (revPAR) will stabilise at $173 during 2012-15, whereas the average daily rate (ADR) will reach $257. RevPAR and ADR in the GCC are the highest among global sub-regions.
Hotel occupancy rates for 2012-15 will average at around 67%, according to the report.
The GCC hotel room supply pipeline is currently led by Saudi Arabia, which is responsible for 61% of new rooms underway, followed by the UAE with 29%.
However, the UAE is ahead of Saudi Arabia in rooms under construction, with 62% of all GCC rooms being built for 2011, compared with 16% in Saudi Arabia.