Middle East and Africa Hotel Development Pipeline For July 2014 at 630 Hotels
The Middle East/Africa hotel region reported 630 hotels Under Contract totalling 147,754 rooms, according to the July 2014 STR Global Construction Pipeline Report.
Among the countries in the region, China reported the most rooms under construction with 148,578 rooms. Six other countries reported more than 5,000 rooms under construction: India (30,117 rooms); Indonesia (26,414 rooms); Malaysia (10,511 rooms); Philippines (8,056 rooms); Thailand (6,411 rooms); and Japan (5,702 rooms).
There are 3,228 hotels totaling 388,359 rooms Under Contract in the United States, according to the July 2014 STR Pipeline Report. This represents a 12.3-percent increase in the number of rooms Under Contract compared with July 2013 and a 43.5-percent increase in rooms under construction.
This represents a 21.8-percent increase in rooms Under Contract, compared with July 2013, and a 23.2-percent increase in rooms under construction. The total rooms Under Contract include rooms in the In Construction, Final Planning and Planning stages but do not include rooms in the Unconfirmed stage.
Typically, hotel developers attempt to finance new hotel construction projects with a combination of debt and equity. This article investigates the benefits and risks of seeking equity participation from hotel management companies.
After accounting for differences in branding, location, property age and condition, market size, and property type, do different management companies still produce significantly different results? This article shows that the answer is: YES.