Hotels 'under pressure' in Mecca, Saudi Arabia

Bloomberg has reported a 40% year-to-date drop in the stock price of Mecca-based Jabal Omar Development Co.

This is indicative of a slowdown in real estate investment in the holy city, said the report. Jabal Omar’s holdings include hotels, which have also been under pressure, though the sector could fare better in the second half during the peak season of hajj, Jones Lang LaSalle (JLL) consultants said.

Data from STR also shows lagging performance in Jeddah, Saudi Arabia. For the month, occupancy was down 4.3% year over year to 43.9% with average daily rate down 10.1% to 624.69 Saudi Arabian riyals ($166.51) and revenue per available room down 14% to 274.35 riyals ($73.13).