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Fri 29 Nov 2019 02:45 AM

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How the Future Investment Initiative boosted hotel rates in Riyadh

Global finance and business elites descended on Riyadh for Saudi Arabia's marquee investment summit last month

How the Future Investment Initiative boosted hotel rates in Riyadh

Global finance and business elites descended on Riyadh for Saudi Arabia’s marquee investment summit.

The Future Investment Initiative, which attracted the who's who of finance to Riyadh, boosted hotel performance levels in the Saudi capital city last month, according to new figures.

Global finance and business elites descended on Riyadh for Saudi Arabia’s marquee investment summit alongside political figures such as US Treasury Secretary Steven Mnuchin and Jared Kushner, a White House adviser and President Donald Trump’s son-in-law, Indian Prime Minister Narendra Modi and Brazilian President Jair Bolsonaro.

STR’s preliminary October data for Riyadh indicated the three-day event delivered a welcome boost to the city's hoteliers.

The second day of the event coincided with the month’s largest increases in each of the three key performance metrics - occupancy rose by 46.8 percent compared to the year-earlier period while average daily rates (ADR) increased by 72.2 percent and revenue per available room (RevPAR) soared by 152.8 percent.

Based on daily data from October, Riyadh reported a 15.2 percent increase in supply against a 34.7 percent rise in demand.

Over the month, Riyadh hoteliers reported a 17 percent rise in occupancy to 76.2 percent while ADR increased by 7.5 percent to SR717.14 and RevPAR jumped by 25.8 percent to SR546.12.

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