Saudi Arabia is on its way to adding more well situated, comfortable and good hotel rooms to attract more tourists from all over the world and to make business easier throughout Saudi.
More than 300 hospitality properties are under construction in Middle East, which, on the completion, will add 105,037 rooms to the current supply. Of this Makkah and Riyadh alone will boast nearly 30,000 comfortably and very good hotel rooms, according to industry monitor STR.
Saudi Arabia’s focus on tourism as one avenue to diversify the kingdom away from oil dependence is receiving a boost with a slew of hotel projects now under constructions, stated STR in its latest data on Middle East and Africa (MEA) region.
In capital Riyadh, a total 6,290 hotel rooms are now being built to complement the 13,104 rooms in inventory while in Makkah city about 23,307 rooms are now in construction, which will add to the 32,377 rooms already in the market, it added.
In other gulf areas, current hotel projects under constructions in Dubai would add 36,394 rooms to the 97,736 rooms are now being constructed to boost the 26,678 rooms available to the clients, said by the reporter.
According to STR, the revenue per available room (RevPAR) and average daily rate (ADR) of Jeddah hotels slightly dipped in January despite an increase in demand during the month. The ADR was 2.4 per cent lower to SR732.33 while RevPAR slipped 2.1 per cent to 370.3 on an industry occupancy rate of 50.6 per cent. RevPAR, a key and important hotel industry performance indicator, is obtained by multiplying a hotel’s ADR by its occupancy rate, it said.
STR said in its report that the month’s high demand growth figure was boosted by the school holiday during the middle of January.
The hotel room available in Jeddah was up 11.7 per cent in January, while demand grew at a faster rate of 12.1 per cent, it stated.
On the Africa scenario, STD report said a total of 146 projects are being implemented in the region which will add another 26,030 rooms.