Saudi to expect 75 new hotels over next four years

A total of 75 new hotels will be opened by global operators in Saudi Arabia over the next four years, a tourism official in the kingdom has claimed.

According to sister publication Arabian Business, Salah Al Bakheet Al Talib, vice-president of the Saudi Commission for Tourism and National Heritage (SCTNH), was reported in Saudi media as saying a string of new hotel openings will increase choice in the market – in particular boosting the kingdom’s three- and four-star offering.

“Several global hotel companies are entering the Saudi market to operate 75 hotels over the next four years, with the support of the SCTNH, as a result of the commission’s efforts to create a sustainable business environment for the hotel industry [here],” he was quoted as saying.

He reportedly made the comments after signing an investment agreement with Choice Hotels International and Equinox Ventures, a joint venture between Dubai-based consultancy Equinox Group and Al Tayyar Travel Group, at the end of last month. Under the deal, Choice is to launch its three most prominent brands, Clarion, Comfort and Quality, in Saudi Arabia and the UAE.

Shuja Zaidi, president of Equinox Group, said in a statement to media: “Currently, markets such as Dubai, Riyadh, Jeddah and Makkah are undersupplied in mid-market hotel accommodations, providing an opportunity for a strong hotel brand such as Choice to bring its portfolio to the market.”

According to Al Talib, negotiations are underway with several other unnamed international hotel companies to enter the Saudi market

Hotelier Middle East has previously reported that Emaar Hospitality and Citymax Hotels were both planning on making inroads into the Saudi Market, with the later poised to open 15 new properties from now until 2020. 

Whereas global operators such as FRHI and Hyatt have signed deals to operate new hotels in the Kingdom. Meanwhile, Ascott is gearing up to plug the five-star serviced apartments gap in the market and Golden Sands hotel apartments has witnessed increased interest from Saudi Investors.

Operators already in Saudi Arabia, meanwhile, are taking measures to increase their services at their properties. Makarem Hotels, specialised in the cities of Makkah and Madinah, unveiled new services, including the spiritual concierge and the Karam Club Card.