Report: Saudi Arabia's hotel pipeline shifts to midscale

Jeddah

A new report from Top Hotel Projects (commissioned by the Hotel Show Saudi Arabia 2016) suggests that after years of luxury development, Saudi Arabia's hotel industry is starting to lean toward mid-range hotels. Currently, six out of the top 10 brands with the most development currently under way throughout the Kingdom are classed as mid-market.

New mid-market developments include Park Inn by Radisson (1,433 rooms); Hilton Garden Inn (1,155 rooms); Four Points by Sheraton (1,890 rooms); Aloft Hotels (627 rooms); Mercure (528 rooms); and Staybridge Suites (538 rooms). Top destinations include major hubs like Riyadh, Jeddah, Makkah and Madinah.

“The mid-market segment is currently under-supplied, pushing the demand for quality serviced apartments as well as three- and four-star properties," Hospitality Management Holdings CEO Laurent A. Voivenel said.

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

Calling Saudi Arabia “a key focus country for our group,” Rezidor Hotel Group Saudi Arabia district director Basel Tala said that the company’s pipeline in the Kingdom included 17 hotels and 3,780 rooms over the next five years.

Upcoming mid-market properties in Saudi Arabia’s pipeline include Accor’s four-star Novotel (450 rooms) and Adagio Aparthotel (77 rooms) and three-star Ibis & ibis Styles (463 rooms), all set to open in 2016 and 2017.

Source: Hotelier Middle East

Suggested Articles

Expenses are outpacing revenue growth, decreasing profits for hoteliers across Europe.

Target markets in the state of Gujarat include Surat, Baroda and Gujarat International Finance Tec-City.

The one-day event will focus on related hospitality concepts such as hostels, co-living, co-working, student accommodation and serviced apartments.