Middle East hotel markets — Outlook, trends and opportunities and hotel valuation index

Abstract

The hotel markets in the Middle East have historically been underpriced in comparison to other international markets (mainly those in the West). However, such a situation is coming to an end. A rigid pricing strategy was implemented simultaneously across the region in 2005, a move triggered by increased liquidity in the region and sustainable levels of demand. The strong purchasing power of the GCC consumers (driven by staggering economic growth and liquidity), together with the sustained levels of corporate and leisure demand in the region, successfully absorbed the rise in room rate. The price elasticity of the hotel markets was further facilitated by the steady appreciation of the euro against the US dollar (Europe is the main non-Arab source market for the region).Journal of Retail and Leisure Property (2006) 5, 326-337. doi:10.1057/palgrave.rlp.5100030