The number of branded hotel keys in Saudi Arabia will reach 69,300 by the end of 2022, a 15% year-on-year increase, according to a Colliers report ahead of the Future Hospitality Summit (FHS) to be held on May 24 in Riyadh takes place. 25
Co-organized by The Bench, Meed and Saudi Arabia-based Semark under the theme “Reimagined Horizons”, FHS Saudi Arabia at the Riyadh Airport Marriott Hotel brings together government leaders, hotel investors, owners, developers and operators to discuss the future of the hotel discuss development, destination impact, aviation, sustainability, restaurant investments and human capital.
The hospitality industry in Saudi Arabia is on track to recover from the pandemic. Both Riyadh and Jeddah, as major travel hubs in the Kingdom, have benefited from events and campaigns such as Riyadh Season as well as growing consumer confidence in travel in the second half of 2021, and this is expected to continue to positively impact hotel demand in Germany will impact in 2022. The projected occupancy rate for 2022 in Riyadh is 65 percent, with 54 percent projected for Jeddah, an increase of 12 and 7 percent, respectively.
On the hotel supply side, Saudi Arabia saw a 4 percent increase in the number of branded hotel keys in 2021, with 60,400 keys at the end of the year. In 2022, the total number of branded hotel keys is expected to reach 69,300 keys, surpassing both the UAE with a projected growth of 3 percent and Egypt with a growth of 8 percent. About 8,900 keys are expected to hit the KSA market this year.
Alongside the strong performance of the sector and the outlook for 2022 in the Kingdom, there have been numerous announcements for new hospitality projects that will drive further growth and development in Saudi Arabia, including:
• The Diriyah Gate Development Authority (DGDA) has unveiled its vision for Diriyah Square, the commercial heart of its SR190 billion (US$50 billion) Diriyah mega-project on the outskirts of Riyadh, Kingdom of Saudi Arabia, due to open by 2024 To date, 16 international hotel brands have been confirmed in the Diriyah Gate Development and it is expected that there will be 38 in total.
• The US$15 billion AlUla master plan will be developed in three phases in 2023, 2030 and 2035. The plan includes a wide range of initiatives in archaeology, tourism, culture and education, and the arts, and reflects Vision 2030’s goals for economic diversification. Strengthening the local community and preserving heritage. By 2035, the site will have 9,400 hotel rooms and upon completion, 2 million visitors per year are expected.
• The AMAALA coastal development project will include 30 hotels and 3,000 hotel rooms. The large-scale mixed-use project is expected to receive around one million visitors per year.
• The US$13 billion (SR 50 billion) mega-development project Asser Tourism Masterplan aims to transform the Aseer region on the Red Sea coast into a tourism hub that is expected to attract more than 10 million local and international visitors by 2030 The Arabian Highland aims to be a sustainable tourism destination offering mid-priced experiences. The region, known for its agricultural sector, is gradually transforming into a modern tourism and hospitality center that emphasizes its high mountain peaks and natural resources.
Christopher Lund, Executive Director and Head of Hotels at Colliers Mena, who will moderate a session on tourism growth at FHS Saudi Arabia, said: “We see that developers in Saudi Arabia place a high value on finding the right partners and operators for their Hotel projects aiming to have the newest and strongest concepts and best performing properties on the market.”
Jonathan Worsley, Chair of Investment Conference organiser, The Bench, said: “We are delighted to return to the Kingdom at the end of this month following the success of the inaugural Future Hospitality Summit in October 2020 with the Saudi Arabian Ministry of Tourism and the G20 Secretariat and three to be years organizing the Saudi Hospitality Investment Conference (SHIC). The interest we are seeing for this year’s event is exceptional, testament to the great vision and ambition for tourism in the Kingdom.
“Saudi Vision 2030 sets the stage for an incredibly bright future for the sector and with the multitude of investment opportunities emerging in Saudi Arabia, we want to offer the hospitality investment community a unique and important opportunity to come together and gain critical insights from.” key dignitaries and industry leaders involved in the Kingdom’s hospitality market.”
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