Pipeline progress becoming a key indicator of hotelier performance

The progress of planned hotel projects is becoming an increasingly important indicator of hotel performance in the Middle East.

The progress of new projects that hotel chains have planned, referred to in the industry as pipeline projects, is increasingly being used as a method for assessing future performance of major hotel groups, according to participants at MEED’s Arabian Hotel Investment Conference.

“Pipeline progress is a relatively new concept for the hotel industry. It is important as it gives an indication of growth possibilities and it affects share prices for listed hotel groups,” said Puneet Chhatwal, senior vice president and chief development officer, the Rezidor hotel Group.

Speaking on the panel at the AHIC event Christian Karroglanian, chief development officer at France’s Accor, said that the hotel group has 10,000 new rooms, 50 properties, planned for the Middle East and North Africa region. Chhatwal, also on the panel, said that the Rezidor Group currently has 7,500 new rooms in the pipeline for the region.