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.

About HVS

HVS, the world’s leading consulting and services organization focused on the hotel, mixed-use, shared ownership, gaming, and leisure industries, was established in 1980. The company performs 4,500+ assignments each year for hotel and real estate owners, operators, investors, banks and developers worldwide. HVS principals are regarded as the leading experts in their respective regions of the globe. Through a network of some 60 offices and more than 300 professionals, HVS provides an unparalleled range of complementary services for the hospitality industry. hvs.com.

Hala Matar Choufany
President for HVS Middle East, Africa & South Asia and Managing Partner of HVS Dubai
HVS