Hilton says Middle East expansion will add 35,000 jobs

Hilton

• Hilton to double in Middle East
• Thousands of jobs for nationals
• Focus on mid-market

Hotel group Hilton’s expansion plans in the Middle East will create 35,000 jobs, its regional head has said.  

The US company will at least double its size in the region with 130 new properties, its Middle East and Africa president, Guy Hutchinson, said. 

“We’re seeing this part of the world emerge as a thought and product leader,” he told the Skift Global Forum East 2024 in Dubai. “Across the region, you have these national tourism strategies underpinned by amazing infrastructure. That’s supercharging growth.”

He said Middle East guest numbers in the first nine months of the year reached 2.2 million, more than double its pre-Covid numbers. 

Hilton operates 150 properties in the Middle East and Africa region. Revenue per available room – the main industry metric that reflects both room prices and occupancy levels – reached $125.03 in the first nine months, up 10 percent on the previous year. 

Hilton is reporting particular growth in Saudi Arabia, where Hutchinson said one-quarter of the branded hotels under development is one of its brands. 

In February, Hilton CEO Chris Nassetta said the company plans to quadruple its presence and open more than 60 new hotels across the kingdom in the coming years. 

He said the new properties will create almost 10,000 jobs, more than half of which would be for Saudi nationals. 

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Hutchinson, who joined the group from Abu Dhabi-based Rotana Hotels & Resorts last year, said the regional expansion plans “will generate 30-35,000 jobs at a minimum”.

He said one-quarter of its Middle East pipeline is mid-market – Garden Inn and Hampton.

“The mid-market segment is growing rapidly and is an essential part of development. Not only is there massive demand for this product, but the investment returns are exceptional,” he said. 

Industry specialists told AGBI last month that Saudi Arabia’s emphasis on luxury hotels has provided openings for investors in the mid-range segment.

Middle East hospitality veterans have also downplayed concerns over wider regional tensions, saying the industry has survived crises before and is poised to do so again.