Budget hotel revolution predicted for Middle East

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A leading property consultancy has said that the Middle East could undergo a budget hotel revolution, as the Arabian Travel Market (May 2-5) gets underway in Abu Dhabi.

According to reports from ArabianBusiness.com, analysis from Jones Lang LaSalle predicts that rapid growth of low-cost hotels could be set to shake up the tourism market, in a region already scrambling to cater for increased demand.

The Saudi cities of Medina and Makkah, which have seen several luxury hotel openings recently and already cater to millions of religious pilgrims each year, are expected to become low-cost hubs.

"I see huge potential [for budget hotels] especially in places like the holy cities in Saudi Arabia; phenomenal potential," the website quoted Jones Lang LaSalle's Thierry Loué as saying.

"We’ll see also a lot of new budget hotels coming to many secondary cities. You’ve seen the first easyHotel opening in Jebel Ali; this is the kind of environment you are going to see two and three-star properties popping up in."

With hotel performance throughout most of the region predicted to improve this year, the firm believes that budget properties could revolutionize the accommodation offering in the same way budget airlines changed the way we fly.

The phenomenal growth of the Middle East is expected to be a major theme of the Arabian Travel Market, which sees over 2,200 exhibitors showcasing across some 20,000 square meters of floor space.

In remarks to mark the opening of the event, the show's organizer Mark Walsh said that the industry was riding a "wave of optimism," particularly in the UAE and Saudi Arabia.

"Recent estimates for hotel occupancies in both countries suggest a healthy double digit increase, according to industry professionals," he said.

"Naturally, Qatar will provide a lift for the whole region as infrastructure projects begin in earnest, in preparation for the FIFA World Cup 2022."

http://www.arabiantravelmarket.com/