• EIGHTClouds has announced a USD 10 million investment to support the GCC expansion of Next’House.
• This investment reflects growing demand for upscale, budget-conscious accommodations.
• Next’House challenges traditional hostel concepts, reshaping competition in the regional mid-tier travel market.

EIGHTClouds Backs Next’House

In a move as calculated as it is visionary, EIGHTClouds has pledged USD 10 million to support the expansion of Next’House across the GCC. The luxury hostel chain is set to scale its operations in the UAE, Saudi Arabia, and Qatar.

Next’House has redefined budget accommodations with a blend of modern design, advanced tech, and curated social spaces. The company exemplifies a rising trend in hospitality: affordable luxury aimed at tech-savvy, experience-driven travelers.

The investment represents a strategic push to capture a share of the GCC’s rapidly evolving tourism sector. In 2023, the market was valued at over USD 270 billion.

“EIGHTClouds is committed to backing ventures that redefine industries. Next’House delivers a high-demand service that aligns with modern travel preferences,” said Rayan Hanna, Founder & CEO of Next’House.

Luxury Hostels: Filling a Market Gap in the GCC

The GCC’s hospitality market is dominated by high-end hotels and economy options, leaving a gap for upscale yet affordable accommodations. Next’House addresses this void with a hybrid model.

It offers private rooms, shared spaces, and experiential add-ons, appealing to solo travelers, remote workers, and younger tourists.

The expansion strategy aligns with regional strategies like Saudi Arabia’s Vision 2030 and Dubai’s plan to attract 25 million visitors by 2025. These initiatives create fertile ground for innovative concepts like Next’House, which bridges the gap between budget and luxury.

Implications for Regional and Global Markets

Next’House’s growth speaks to larger trends in the global hostel industry, projected to reach USD 10 billion by 2025. With travelers increasingly seeking affordable luxury, the chain has the potential to establish itself as a leader in the mid-tier segment of the GCC’s hospitality market.

Post-investment, the focus will be on leveraging technology to enhance guest experiences. Smart check-ins, personalized room controls, and digital concierge services align with tech-forward travelers’ preferences.

At the same time, the emphasis on communal spaces positions Next’House as a social hub—a critical differentiator in an industry where connectivity matters.

Opportunities and Risks in Next’House’s Expansion

The EIGHTClouds investment positions Next’House to capitalize on the GCC’s tourism growth while catering to the demand for affordable luxury. Its tech-driven approach, coupled with a focus on experiential travel, sets it apart from traditional hospitality offerings.

However, risks remain. Rising costs, evolving traveler expectations, and increasing competition from hybrid hotels could challenge its scalability. To thrive, Next’House must align closely with government policies promoting tourism and adapt to the region’s unique market dynamics.By addressing these challenges, Next’House can solidify its place as a pioneer in upscale hostels. Thus Next’House aims to redefine the GCC’s mid-tier travel market and set new standards for the regional hospitality sector.