The Middle East's hotel construction pipeline reached 607 projects and 147,088 rooms by mid-2024 driven by strong tourism growth in the UAE, Saudi Arabia, and Egypt. Luxury and upscale hotels dominate making up 77% of the projects, the UAE has 87 projects and 22,831 rooms. According to the "Q2 2024 Middle East Hotel Construction Pipeline Trend Report," the UAE and four other countries account for 94% of the projects and 95% of the rooms in the Middle East's overall construction pipeline.

New hotel openings in the Middle East are set to increase with 102 hotels expected in 2025 and 121 in 2026. Despite this expansion, rising construction costs and competition are challenges, prompting a focus on innovation and sustainability.

Dubai's hospitality sector is thriving, with significant growth in both four-star (216%) with 436 new rooms delivered, and five-star (111%) with 1,681 new rooms in 2024. The city is projected to add 15,000 new rooms by 2027, reinforcing its role as a global tourism hub.

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