Complex Made Simple

Correction is possible in ME hotel market

The Middle East hotel industry is currently booming, but there could be a correction in 2009 and 2010 when hotel supply nears its peak and if consumers in the US and Europe are still limiting their travel because of the economic downturn, according to Arthur de Haast, CEO of Jones Lang Lasalle Hotels, who was speaking at the Arabian Hotel Investment Conference in Dubai. He said overcapacity in the Middle East hotel market should not be an issue of major concern, because 'all developing markets have a period where supply exceeds demand,' and a slight correction for a short period of time is common.