Knight Frank predicts upheaval in Saudi Arabia’s hospitality industry

0

Faisal Durrani, Partner, Head of Middle East Research at Knight Frank, added: “We are on the verge of a sea change for the Saudi hotel landscape – we are moving from vision to reality. The herculean US$110 billion task of transforming Saudi Arabia’s hotel landscape goes far beyond delivering extra hotel room keys. Care and attention must be taken to deliver the right amount of product to the right places.

According to Turab Saleem, Partner, Head of Hospitality, Tourism and Leisure at Knight Frank, “Delivering the large number of rooms that the Kingdom has planned will bring a number of opportunities. This is the largest hotel supply pipeline ever seen in the region, it will usher in a golden age of hospitality for Saudi Arabia.

Saleem added that the society expects to see the rapid development of a number of parallel industries which will be forced to evolve to meet the impending influx of visitors. It is clear that it will require a significant change in the physical infrastructure of the Kingdom, but in parallel, new national carriers will have to be quickly established, but above all, regulations will have to be developed to manage all aspects of an international tourism and dynamic. scene, ranging from hotel workforce to facilitating hotel investments through streamlined processes.

Knight Frank’s research also revealed a shift in the nation’s top hotel room operators by 2030.

The real jewel in the crown for hotel operators, according to Durrani, will be securing a presence in the Giga, NEOM and Roua Al Madinah projects planning to add around 80,000 keys each”.

Knight Frank estimates that by 2030, the Accor group will consolidate its position as the largest operator of hotel rooms in Saudi Arabia, doubling the number of rooms it manages to nearly 28,000. Hilton hotels will grow from fifth current position to become the second largest brand in the country, with nearly 19,000 rooms under management by 2030.

Saleem pointed out, “As it stands, the Kingdom’s Giga projects make up nearly 73% of the hotel supply pipeline. And nationally, we’re on track to see a 63.2% increase in the number of 4- and 5-star hotel rooms by the end of the decade. Saudi Arabia’s advantage over other countries in the region is its size. Each of the 13 provinces of the Kingdom offers something unique and this in itself will play an important role in attracting regional and international tourists. The Giga Projects, with their unique offerings, will further enhance what is already an incredibly diverse range of tourist attractions.”

Share.

Comments are closed.