Hotels in MENA: How Much Can You Invest? - By Nehme Ayoub and Hala Matar Choufany
We attempt to provide a guideline of 'maximum supportable hotel investments' across Middle East and North Africa, reflecting current hotel market dynamics for the cities addressed.
With the cost of raw materials fluctuating and with global economic conditions shifting the types and patterns of demand, developers are becoming sceptical about when to build, what to build and whether to commit to construction contracts. Therefore, in this article we have taken into consideration the current demand characteristics of each market and have derived the maximum supportable investment for the development of a certain hotel asset in a certain market. We illustrate our findings for 12 markets in the MENA region across the following four hotel asset classes.
Five-star
