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MENA Hotel Forecasts June 2020- By Colliers International

Forecast 2020 | 2021- Considering the impact of COVID-19 on occupancy and the industry

There is a lot of uncertainty in the market regarding the expected performance of hotels UAE - To benefit from the build up to the EXPO with the actual event expected to start in Q4 2021 KSA - Forecast in 2020 assumes restricted pilgrim access to Makkah and Madinah during Ramadan and Haj

The travel and tourism sector has been hit hardest by coronavirus, as governments continue to introduce measures to slow the spread of the virus. Hotel owners are also taking precautions as travel comes to a halt. 

Considering the potential impact of COVID-19 on hotel performance, this publication has been prepared by Colliers International, providing 2020 and 2021 hotel occupancy forecasts for 24 submarkets in key MENA hospitality markets. 

There is a lot of uncertainty in the market regarding the expected performance of hotels. Based on Colliers MENA Hotel Market Survey results, the forecast assumes the recovery to start in Q4 2020 and continue in 2021. 

• The forecast assumes faster recovery for the UAE and KSA markets: 

• UAE – To benefit from the build up to the EXPO with the actual event expected to start in Q4 2021. 

• KSA – Forecast in 2020 assumes restricted pilgrim access to Makkah and Madinah during Ramadan and Haj. Once the expected recovery begins in Q4 2020, the markets are expected to continue benefiting from the on-going tourism initiatives, upcoming mega projects as well as domestic tourism. 

• Data is extracted from Colliers International Hotels’ database, complemented by data from STR Global and local statistics centres. 2019 has been used as the forecasting base. 

• Market activity is being impacted in many sectors. The analysis uses the latest available data but given the unknown future impact that COVID-19 might have on the hotel market, any change in the recovery timeline will affect the forecast. 

MENA Hotel forecasts

Full -Year Occupancy % Forecast – 2020

Full -Year Occupancy % Forecast – 2021