The most attractive opportunity in Muscat is …

… branded, budget/economy hotels represent the most attractive development opportunity as the hospitality sector in Muscat matures and expect to see an upturn in development activity in this segment of the market moving forward. 

Cluttons
Muscat Property Market Outlook
Winter 2016/17

muscat-property-market-outlook-winter-2016-17-landing-page

Cluttons Oman recently released the Muscat Property Market Outlook | Winter 2016/17.  This report addresses relevant issues in the residential, office and hospitality market. Typical of Cluttons reports it is a very detailed and professional review of recent market developments combined with realistic forecasts of future trends.

The section on the hospitality market is of specific interest and relevance to MMIS. As a proven operator of mid-range hotel properties in Oman MMIS strongly supports the commercial opportunity highlighted in the report, namely “[mid-range] hotels represent the most attractive development opportunity as the hospitality sector in Muscat”.

Some of the key points made by Cluttons:

  • Bubbling supply pipeline for top-end hotels
    The four and five star hospitality sector is going through a period of rapid expansion in Muscat driven by significant rises in inbound tourism numbers and spending over recent years.
  • More than 1,200 more hotel keys in 2016
    In addition to the re-opening of the five star Sheraton (230 keys) this year, recent five star hotel introductions include the Hormuz Grand (231 keys) and Grand Millennium (296 keys and 40 apartments), while the four star hotel apartment sector has seen the introduction of Somerset Panorama (277 apartments), the Millennium (115 apartments) and Coral Plaza (89 apartments).
  • … and more to come
    Over the next two years, hotels currently under construction will result in a room supply increase of around 50% in the four and five star category. 
  • Supply to drive competitiveness
    The significant increase in four and five star hotel supply will result in an increasingly competitive market from an operator perspective but will also provide a significant increase in choice for customers. This will help to drive the continued growth in the tourism and hospitality sector, with other operators drawn in by the allure of a rapidly emerging market. 
  • Limited supply pipeline for mid-range hotels
    The only branded mid-range hotel in Muscat is the Ibis (171 keys), and there are no branded mid-range hotels under construction and only a limited potential supply pipeline. 
  • Attractive development opportunity
    Branded, mid-range hotels represent the most attractive development opportunity as the hospitality sector in Muscat matures.  Expect to see an upturn in development activity in this segment of the market moving forward. 


More information

  • Visit Cluttons for a summary of the Muscat Property Market Outlook | Winter 2016/17 by clicking here.
  • Download the full report here.
  • See a full list of recent articles on the Sultanate of Oman by clicking here.

Mac Thomson
CEO, MMIS LLC
Mac@MMIS.co
www.MMIS.co

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