TARGETING A DIVERSE MARKET
El Mansoury touches on the trend toward diversification in the Saudi market since religious tourists come from such a wide variety of backgrounds.
This is already reflected in the Makkah and Madinah pipelines, much of which are made up of budget and mid-range brands, highlighting a demand for more economic and long-stay options, especially during the religious periods of Hajj and Umrah.
IHG’s Holiday Inn Makkah Al Azizah will add 1,238 rooms to Makkah in 2015, and is one property set to significantly boost mid-market supply in the city. Gauvin says: “It is a very large hotel so customers can visit in high numbers during Hajj and Umrah.”
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Additionally, 25 properties will be added to Makkah’s hotel portfolio over the next three years, four of which will have in excess of 1000 rooms. The pipeline includes Hilton Suites, adding 484 keys this year and Doubletree by Hilton with 806 rooms to open in 2016.
Hilton vice president of operations KSA, Mahmoud Mokhtar says: “In Makkah we have to target different markets, hence the existence of Conrad and Hilton Suites. Doubletree will be for another segment.”
According to FRHI Hotels & Resorts, which currently operates 3,000 rooms in Makkah under all three of its brands – Fairmont, Raffles and Swissôtel – there is still a huge demand from the luxury market.
“I can see us having something in Madinah, expanding more into the religious market,” says Raki Philips, FRHI area director sales and marketing Middle East.
“It’s only going to grow,” Philips adds. “The Kingdom is doing a great job to look at ways to improve the experience of Muslim pilgrims year round.”
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