Dubai has suffered the greatest setback of all hotel construction markets in Europe, the Middle East and Africa, according to a new report.
The 2008 Q4 Construction Pipeline report, compiled by hotel real estate researcher Lodging Econometrics, shows that more than one fifth of all cancelled or postponed hotel projects in the EMEA region during this period were located in Dubai.
Twenty projects, representing 7477 rooms, were stalled in the emirate during what was an increasingly bleak final quarter for all markets.
According to Lodging Econometrics, project cancellations and postponements doubled in the second half of 2008, with a total of 164 projects, or 37,450 rooms, being shelved across Europe, the Middle East and Africa.
The report cited a lack of available credit as critical in influencing the slowdown.
“In the Middle East, the evaporation of available lending has seriously impacted their pipeline of high-end resorts,” said the report.
“The withdrawal of cross-border global banks is having major impact, particularly in Eastern Europe and the Middle East.
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