By Staff writer
Dry hotel operator announces plans to 'aggressively target' expansion in Gulf kingdom
Dubai-based dry hotel operator Hospitality Management Holdings (HMH) has announced plans to "aggressively target" expansion in Saudi Arabia as part of its strategy to grow its GCC portfolio.
The company described the Gulf kingdom as a "land of opportunity", adding that it is a "pillar" of its expansion plans in the region.
Laurent A Voivenel, CEO of HMH, said: "Saudi Arabia is a land of opportunity both in terms of domestic, inbound and outbound tourism as well as religious tourism and is a pillar of our expansion strategy that is aimed at capturing maximum market share in the GCC."
He added that 36 percent of the company's total Coral Hotels & Resorts portfolio, its flagship 4 and 5-star brand, is currently located in Saudi Arabia.
"We are eager to build on our success in the country. Saudi Arabia is also one of the largest source markets for most of our operating hotels."
HMH has plans to open the 5-star 400-plus room Coral Al Madina Hotel in the first quarter of 2017, which is being developed to be the first 'smart' hotel in the holy city, offering the most advanced technology including high-tech smart rooms.
According to a recent industry report, Saudi Arabia is witnessing a significant shift towards development of mid-range hotels with six out of the top ten brands focusing on mid-market.
Like the rest of the region, the mid-market hospitality segment is currently under-supplied in Saudi Arabia, pushing the demand for quality serviced apartments as well as 3 and 4-star properties.
Voivenel said: "The scale of opportunity in the region for mid-market and budget hotels is unprecedented... at HMH we are well-placed to serve this segment with three brands out of five targeting middle class."
Saudi Arabia is the second largest hub for hotel construction in the Middle East and Africa, behind the UAE.