Dubai: Hilton Hotels and Resorts is set to double its footprint in the Middle East, with 130 new properties in the pipeline, creating 35,000 new jobs. With an existing portfolio of 104 hotels in the region, the expansion aims to meet the ever increasing visitor numbers.
“Our portfolio in the Middle East welcomed 2.2 million international guests in the first nine months of this year—more than double our pre-pandemic levels,” said Guy Hutchinson, Hilton’s President for the Middle East and Africa.
“The UAE, on its own, has seen a 50% growth in the number of hotels we operate now. We are just growing, doubling, quadrupling across the region. So, (the Middle East) is an environment that is just supercharging our industry across the board.”
“The people pipeline is just as important as the physical pipeline. With our growth, we’re creating 30,000–35,000 jobs in the region."
Golden age for hospitality
Hutchinson, who took charge as MEA President of the hotel group last year, said, “This is a golden age of hospitality for the region, with the Middle East emerging as a global leader in both thought and product for our industry. "
During the first nine months of the year, Hilton’s Middle East and Africa properties saw the highest average daily rates and revenue per available room, $176 and $215, respectively. The hospitality group has benefitted from various regional public-private partnerships, including agreements with Dubai Tourism (signed in October) and Saudi Arabia’s Tourism Development Fund (signed in 2022).
Hutchinson said, “Collaboration between public and private sectors is a hallmark of this region, and Dubai sets the gold standard. Our MoU (with Dubai Tourism) focuses on strengthening that relationship through marketing alignment and joint efforts to drive destination performance.”
“We have signed similar agreements in Qatar, Saudi Arabia, and Abu Dhabi, fostering a unified approach to growing tourism.”
Mid-scale stays
About 25% of Hilton’s regional offerings in the pipeline are in the mid-market segment, which the hospitality juggernaut sees as a significant growth opportunity.
“Over the next 10 years, there will be a growth of 5 billion middle-class income households globally, all hungry for travel," said Hutchinson. "Mid-market makes up 25% of our pipeline today, and it's growing fast." (Within this space, Hilton brands like Garden Inn and Hampton are gaining traction.)
“Of the 150,000-160,000 hotel keys in Dubai, only 25% are in luxury, even though luxury gets 60% of the publicity. The mid-market segment is growing rapidly and is an essential part of development. Not only is there massive demand for this product, but the investment returns are exceptional.”
