ADRs grow on GCC, with luxury rooms contributing to growth

New research from STR commissioned by the Arabian Travel market reveals a strong hospitality sector growth in the GCC in 2024. Government initiatives like Saudi Vision 2030 and the UAE's 'We the UAE 2031' campaign drive the expansion. Luxury hospitality is a key contributor, and industry leaders will share insights at ATM 25 on the region's growing tourism appeal.

The hospitality sector across the GCC is experiencing robust growth, according to new research by STR conducted on behalf of the Arabian Travel market. The report shows a prominent increase in occupancy rates and revenue per available room in 2024, with GCC-wide occupancy recahing 69.5 per cent, surpassing pre-pandemic levels. This growth is attributed to major government initiatives like Saudi Arabia 2030 and the UAE's 'We the UAE 2031' campaign, which fosters infrastructure enhancement and boosting tourism experiences.

The GCC has witnessed the addition of over 35,000 hotel rooms in the past decade, with the luxury segment making up 19 per cent of the total room count, up from 16 per cent ten years ago.

As more than 33,000 rooms are under development, Saudi Arabia is expected to see the highest influx of luxury rooms, positioning the region as a key player in global tourism.

Danielle Curtis, Exhibition Director at ATM, commented on the findings, noting that luxury hospitality drives the region's tourism growth. "Luxury hotel exhibitions will play a pivotal role at ATM 2025, showcasing innovative hospitality concepts that appeal to high-spending travellers. As Demand for premium travel rises, the GCC is well positioned to solidify its reputation as a luxury tourism hub," she said.

Top hospitality leaders such as Haitham Mattar of IHG Hotels and Resorts will share insights into the region's evolving tourism landscape.

Mattar stated, "Demand is set to rise across hotel segments due to development projects and increased leisure and business travel. At ATM 2025, we look forward to connecting with industry leaders and showcasing our contributions to the GCC's hospitality evolution."

ATM 2025, from 28 April to 1 May, will bring together global travel professionals get to explore the latest trends, innovations, and opportunities in the tourism and hospitality sectors.

Select your currency

Suggested for you

All currency

Flat 25% Off on First Stay!

New Details

ADRs Grow On GCC, With Luxury Rooms Contributing To Growth

News Source : Economic Times