Saudi Arabia sees shift to mid-market hotel sector

New report reveals move to cheaper options for market traditionally dominated by luxury properties
Saudi Arabia sees shift to mid-market hotel sector
Park Inn by Radisson is one mid-market brand set to open in Saudi Arabia.
By Staff writer
Wed 06 Apr 2016 01:53 PM

The hospitality industry in Saudi Arabia is witnessing a significant shift towards the development of mid-range hotels in 2016, according to a new report.

In a market traditionally dominated by five-star hotels, the new report from TOPHOTELPROJECTS commissioned by The Hotel Show Saudi Arabia 2016 reveals that six out of the top ten brands with the most development currently underway throughout the kingdom are classed as mid-market.

This includes Park Inn by Radisson (1,433 rooms), Hilton Garden Inn (1,155 rooms), Four Points by Sheraton (1,890 rooms), Aloft Hotels (627 rooms), Mercure (528 rooms) and Staybridge Suites (538 rooms).

Basel Talal, district director of The Rezidor Hotel Group Saudi Arabia, set to open two Park Inn by Radisson Hotels in Makkah by 2017, said: "Saudi-Arabia is a key focus country for our group offering considerable growth potential and we are committed to the development of the kingdom, which is underpinned by a genuine focus on economic diversification by the Government.

"We have a very ambitious growth plan in Saudi Arabia, with a pipeline of 17 hotels and 3,780 rooms over the next five years."

Carlos Khneisser, Vice President of Development, Hilton Worldwide Middle East & North Africa added: "While Saudi Arabia traditionally boasts a luxury hospitality offering, we are now welcoming an increasingly diversified pool of guests from domestic and international markets - and it's important that we evolve our proposition to match their mixed demands.

"This shift has seen the rise of mid-market hotel options, not only in Saudi Arabia but across the region."

Adding to the mid-market pipeline, Accor's 4-star Novotel (450 rooms) and Adagio Aparthotel (77 rooms) and 3-star Ibis & ibis Styles (463 rooms) will open in Saudi Arabia in 2016 and 2017, the report said.

Laurent A Voivenel, CEO of Hospitality Management Holdings (HMH), a hotel management company with properties in Saudi Arabia and across the Middle East will speak on "Tapping into mid-market opportunities" at The Hotel Show Saudi Arabia 2016's Vision Conference in May.

He said: "Saudi Arabia is a land of opportunity both in terms of domestic and inbound tourism and is central to our expansion strategy.

"Continued development of leisure and commercial areas as well as massive investment in tourism infrastructure in key cities like Riyadh, Jeddah, Makkah and Madinah, is fuelling the demand for affordable accommodation. The mid-market segment is currently under-supplied, pushing the demand for quality serviced apartments as well as 3 and 4-star properties," Voivenel added.

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