The Middle East and Africa (MEA) region has a higher attrition rate for hotels under construction or being planned than elsewhere in the world, says STR Global’s managing director Elizabeth Winkle.

Addressing the Arabian Hotel Investment Conference (Ahic) held in Dubai on 6 May, Winkle said that while 90 per cent of hotel rooms under construction worldwide will come to market, in the MEA region the figure falls to 85 per cent. This is because the Middle East is “less secure” than other regions, she said.

Of hotel projects being planned, 55 per cent of rooms will not be completed, a number that drops to 30 per cent by the final planning stages.

There are 21,000 rooms under construction in the UAE, and 17,000 in Saudi Arabia, according to STR Global’s data. This represents 18.6 per cent and 26.9 per cent respectively of existing rooms.

Of the rooms under construction in the MEA region, most (30,100) are at the higher end. Only 400 rooms are in the economy category and 2,300 are midscale. These markets represent a “significant opportunity”, said Winkle.