Despite limited new supply during the third quarter of 2015, the Saudi hotel market continues to display a positive trend.
The hotel market segment in Saudi Arabia continues to display a positive trend with a number of new luxury and upscale projects lined up for completion in the coming two years, according to a local report.
By the end of Q3 in 2015, there were 6,131 rooms under construction in Riyadh spread among 25 hotel properties.
At the same time Makkah’s hotel pipeline consisted of 16,153 rooms across 11 hotel establishments.
In Riyadh, hotel occupancy remained stable at 51% during the third quarter in 2015, compared to Q3 2014.
According to a third party report, ADR figures witnessed a 7.2% y-o-y growth in July 2015, standing at US$216 (SR810), while September 2015 registered a y-o-y increase of 2.3%, bringing ADR up to $220 (SR825).
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In Jeddah, occupancy rates across the hospitality sector witnessed a y-o-y increase of 6.4% during Q3 2015 and stood at 83%. The high occupancy rates in the city could be partially attributed to the number of pilgrims who visited Jeddah as part of their pilgrimage to Makkah.
Recent additions to the hotel establishment’s supply in Saudi Arabia, Q3 witnessed the opening of the 438-key Movenpick Hotel Riyadh, and the 112-room Radisson Blu Plaza Hotel and Ascott Tahlia serviced apartments, both of which are located in Jeddah.
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