- · New research by Colliers International has revealed the KSA mid-market hotel sector will witness a compound annual growth rate (CAGR) of 16% between 2017 and 2021;
- · Mohamed Awadalla outlined his thoughts during the Saudi Arabia Hotel Investment Conference
TIME
Hotels’ CEO, Mohamed Awadalla, has outlined the importance of mid-market hotels
to the Kingdom’s tourism industry during the inaugural Saudi Arabia Hotel
Investment Conference (SHIC), which took place yesterday, 26th
February at the Marriott Convention Centre, Riyadh Marriott Hotel.
According
to new research, published ahead of SHIC by Colliers International, recent reforms
in Saudi Arabia – and widespread investment in the Kingdom’s burgeoning tourism
industry – will drive growth in the mid-market hotel sector at a compound
annual growth rate (CAGR) of 16% between 2017 and 2021.
The
supply for mid-market hotels is expected to increase over the next five years
with Makkah, Riyadh and Jeddah to see the majority of hotel openings –
accounting for 54%, 16% and 12% of the forthcoming midmarket supply in the
Kingdom.
Awadalla
said: “As receipts from Saudi oil revenues have declined, some government
departments and private companies have reduced their travel expenses which in
turn has led to an increase in corporate demand for more mid-market hotels, an
area of the market that has traditionally been reserved for more luxury properties.
“Our
current pipeline of hotels and residences aims to offer a high-quality hotel or
serviced apartment for a market segment that is currently under-represented in
the region.”
In
April 2016 TIME Hotels signed a deal with Saudi-based Al Fahd Investments. As
part of this agreement, UAE-headquartered TIME Hotels will expand its presence
in the Kingdom with the management of several new mid-market hotels.
The
properties under TIME Hotels and Resorts are set to open between 2018 - 2019 in
Jeddah, Riyadh and other cities. While, the TIME Express Hotel in Riyadh, set
to open around 2019, will be the debut for the Express brand in the Kingdom.
“TIME
Hotels has been very strategic with its openings, both in Saudi Arabia and the
wider Middle East region, by identifying and assessing the demand within the
market and implementing the most suitable brand from the TIME portfolio to best
match consumer demand. We’re excited by the prospects 2018 brings and look
forward to adding further to our portfolio,” Awadalla continued.
Following
recent reforms and the relaxation of visa regulations, Saudi Arabia is poised
to capitalise on these factors as it nurtures a vibrant leisure and
entertainment sector, supported by a new generation of midmarket hotels in its
bid to pursue targets of 30 million visitors annually by 2030.
“Continued
development of leisure and entertainment areas as well as investment in tourism
infrastructure will fuel demand for affordable serviced apartments and three
and four-star properties in Saudi Arabia, particularly as the 2030 growth
targets draw ever closer,” Awadalla added.
During
the event SHIC brought together a line-up of high-level speakers, panel debates
and roundtable sessions – providing delegates with valuable insights into the
ever-changing landscape of the Saudi hospitality industry.
