Demand for three-star accommodation in Dubai surged 70 percent in the first quarter of this year according to a report by arabianbusiness.com.
Expedia, the US-based online travel reservation website, said that while interest in the budget hotel market was increasing, the three-star hotel segment only represented a third of the new hotels in the Middle East that were added to the site last year.
However, data from Expedia found that in the first quarter of this year interest in three-star properties in Dubai grew by up to 70 percent over the same period the year before. While interest is high, the latest STR Global Construction Pipeline Report shows that the hotels being planned in the region do not reflect this and luxury is still the dominant force in the market.
STR Global’s March report found that of the 473 hotels and 127,952 rooms in development in the Middle East, the economy sector only accounts for 4,573 room or 3.5 percent of the market.
This is a global phenomenon and the World Tourism Organisation claims that the economic climate drove demand for economy hotels by as much as sixteen per cent last year.