As one of the largest midscale and economy hotel operators in the region, Accor is one of many ambitious newcomers to Riyadh’s hospitality market looking to take advantage of the city’s exciting performance figures.
“A major regional hub like Riyadh is essential in our present and future regional strategy,” says Accor Middle East managing director Christophe Landais.
“By 2015, Accor will be operating five hotels in Riyadh representing 1000 rooms across all market segments.
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With our recently opened Ibis Riyadh Olaya Street hotel, the first Ibis in the country and first internationally branded economy hotel in KSA, as well as our Suite Novotel Riyadh Olaya, we are in a strong position to capture the demand in the mid-market segment.
Also, with the signing in 2012 of a 400-room five-star Sofitel luxury hotel due to open 2015, we will have the perfect luxury product to perform strongly in this market despite strong competition in the five-star segment,” Landais continues.
Another hotel group preparing to enter the Riyadh market is Millennium & Copthorne Hotels with the 350-room Millennium Riyadh Hotel and the 650-room Grand Millennium Hotel Riyadh both due to open in 2015.
“The Riyadh market is mainly derived from corporate and government demand which has helped the hotel market to remain sustainable, often with the highest rates in the GCC with an ADR above $250,” says Millennium & Copthorne Hotel’s Middle East and Africa vice president of operations Moine Kandil.
“However, with the large amount of room supply coming online in Riyadh, we are expecting adjustments to both ADR and occupancy in the short to medium terms.
Most of the inventory is scheduled to come online during 2013 and 2014, which we anticipate to be the years of pressure in the market,” continues Kandil.
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