Dubai: Revenue per available room (RevPAR- a benchmark for performance) in hotels across Dubai, Abu Dhabi, Doha, Jeddah, Muscat and Riyadh are expected to grow this year and in 2015, according to a report by PwC.

Muscat’s RevPAR is expected to grow at 6.6 per cent this year, followed by Dubai (6.5 per cent) and Doha (5.2 per cent). In 2015, RevPAR growth is forecast to continue with Muscat and Dubai to grow at 6.6 per cent and 6.5 per cent respectively and Doha expected to grow at 5.4 per cent.

“Travel to the Middle East is expected to grow strongly over the next 10 years, with the region’s strategic location and investment in airports and infrastructure, establishing it as an important global hub. Combining this with future mega events being held in the region and an emergence as a magnet for both MICE [meetings, incentives, conventions and exhibitions] and shopping travellers, provides for a wealth of opportunities for both hotel operators and owners,” said Viren Lodhia, Hospitality and Leisure Lead Partner at PwC Middle East, in a statement.

Meanwhile, average daily rate (ADR) is expected to be the strongest metric in Doha, Dubai and Muscat. However, in Riyadh, Jeddah and Abu Dhabi, PwC expects low ADR growth. Occupancy is the principal driver in these markets.

The six cities represent over 124,000 hotel rooms. High levels of new supply have been added in recent years with more scheduled to open.

The Dubai Department of Tourism and Commerce Marketing (DTCM) estimates a need for between 140,000 to 160,000 new rooms by 2020, and more than 10,000 rooms needing refurbishment before Expo 2020, which Dubai won the bid to host last year, PwC stated.

“Whilst we are not yet back at 2008 levels (particularly in relation to ADR’s), a number of cities are edging ever closer to those highs when we look at forecast occupancy rates,” Lodhia said.