2025 HVS Middle East & Africa Hotel Valuation Index

Dear Partners,

The 2025 HVS Middle East & Africa Hotel Valuation Index (HVI) offers a clear view of how hotel values across the region have shifted since 2019 - and what those movements signal for investors. Covering 23 markets across 16 countries, the index reflects the performance of a typical upscale/upper-upscale hotel and shows where demand, policy and capital are translating into measurable value.

Middle East: A More Disciplined, More Investable Market

Most Middle Eastern markets continue their upward climb, supported by strong tourism strategies, expanding connectivity and sustained rate growth.

• Riyadh +100% - driven by transformational development, improved access and a year-round events pipeline
• Dubai +24% / Abu Dhabi +24% - consistent performance anchored by international demand and corporate activity
• Doha +55% - supported by air capacity growth and MICE-led demand
• Makkah +32% - underpinned by long-term religious tourism and large-scale infrastructure

A handful of markets remain subdued, shaped more by structural constraints than lack of future potential.

Africa: Selective but Strong Growth Where Demand Is Diversified

Value growth continues to concentrate in destinations with a balanced mix of leisure, corporate and domestic demand.

• Dar es Salaam +57%, Accra +39%, Zanzibar +36%, Cape Town +49% - strong, rate-driven value uplift
• Nairobi +15% / Lagos +14% - steady progress supported by controlled supply
• Other markets show mixed performance due to economic pressure, oversupply or uneven recovery

Africa's development pipeline remains large, though delivery is inconsistent — creating opportunities for repositioning, recapitalisation and strategic new development.

What This Means for Investors

Several themes cut across both regions:

• Value continues to concentrate in markets with genuine demand fundamentals
• Mid-scale, mixed-use and branded residential models are gaining traction
• Government-led tourism strategies are shaping long-term value
• The shift from developer-driven to performance-driven investment is accelerating
• Disciplined underwriting and active asset management are now essential

Across MEA, the message is consistent: returns favour investors who read demand accurately, manage risk well and build for long-term value rather than short-term volume.

Access the Full Findings

The HVI is more than a benchmark - it's a decision-making tool. It highlights where capital is moving, where risk is shifting and where the strongest long-term opportunities exist.

If you would like a deeper briefing, a market-specific discussion or support aligning these insights to your investment strategy, my team and I would be pleased to engage.