Riyadh is noting a strong showing from local operators such as Boudl Hotels, which currently operates nine branded hotels in the city between the upscale four-star and luxury segments. The Ascott Villas Riyadh, which is set to open its doors in November 2017, is located in the prestigious Hittin district, close to the upcoming King Abdullah Financial District (KAFD), which has been billed as Riyadh’s new central business district.
It is the future home of the Saudi Stock Exchange, Capital Markets Authority and a host of other financial and professional services firms.
Ascott is set to open another property in Riyadh, the 234-units Ascott Rafal Olaya Riyadh. This property is due to open in the latter part of the year.
But the year ahead will see challenges and opportunities jostle for attention.
“Despite a robust supply pipeline in Jeddah and Riyadh, delays in openings are expected to continue into 2017-2018, allowing existing hotels to grab strong fair share and perform well,” says Ataya.
“Two key projects that will positively shape the long term outlook for the hotel market are the Jeddah Economic City and Airport expansion 2017-18 and, in the meantime, low oil prices continue to reflect slowing demand growth with gradual recovery forecasted in the medium term, thus further sustaining and stressing the growing development opportunity for economy and mid -market hotels.”
Miccolis says that the expected arrival of new international branded operators will continue to enhance service standards in KSA, while tourism from pilgrim and domestic families will continue to increase as infrastructure improves.
“2017 might still be a difficult year for Riyadh and Khobar which are more dependent on corporate and government demand and will therefore take a bit more time to recover,” he warns. “Jeddah and the holy cities will be maintaining similar occupation with an ADR uplift.”
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