According to Alpen Capital, the GCC hospitality market is expected to grow at a 7.2% CAGR from an estimated US$ 22.9 billion in 2017 to US$ 32.5 billion in 2022. Upcoming mega events and government initiatives to boost tourism are the primary drivers behind this growth.

Growth in hospitality sector revenue of individual GCC countries is expected to range from 6.0% to 12.0%. Both UAE and Qatar are expected to witness high revenue growth on account of significant investment activities in the tourism and hospitality sector for the upcoming Expo 2020 and FIFA World Cup 2022. Bahrain and Oman are also expected to grow at a rate higher than the GCC average.

Key operating metrics of the sector, which have been under pressure in the recent past are expected to show a slow but steady recovery supported by the boost in demand. Economic growth and government initiatives leading to increase in tourist arrivals is expected to support growth in occupancy and room rates. Average GCC occupancy is expected to increase by 6 ppt from 62% in 2017 to 68% in 2022. ADR is expected to increase at a CAGR of 1.1% to USD 161 in 2022 whereas the RevPAR is expected to increase at a CAGR of 2.9% to USD 109 in 2022.