KSA looks to 34,882 economy hotel rooms over next 5 years
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There is a limited supply of quality internationally branded economy hotels in the Kingdom of Saudi Arabia.
New findings from Colliers International research showed that there are currently seven notable cities without any such hotel stock, representing a significant gap in the market, as reported by Saudi Gazette.
The forthcoming supply of internationally branded economy hotels is strong, with 1,182 rooms expected to be delivered to the market across the Kingdom by 2015. These rooms will include well-established brands such as Ibis, Centro, Premier Inn and Holiday Inn Express.
The total hotel supply in the Kingdom in in 2011 was estimated at 157,430 rooms, of which only 22 percent was classified under the “three star” categorization, the report said. Of these hotels, approximately 70% of the rooms can be found in the Makkah region, with the remaining 30 percent primarily spread over Riyadh, Madinah, Eastern Province, Asir, Tabuk, Jazan and Al Baha.
Research further indicated that 19% of economy hotels across the Kingdom are branded. The level of branded economy hotels can range from 52% in Taif, to 12% in Jeddah to 0% in Jazan. Confirmed forthcoming supply of internationally branded economy hotels include approximately 336 rooms by 2013, 484 by 2014 and 1,182 by 2015 across Saudi Arabia. Key players involved include Ibis, Centro, Premier Inn and Holiday Inn Express with the majority of these rooms located in cities such as Riyadh, Jeddah, Dammam and Al-Khobar. In addition to this, Wyndham Worldwide have signed an agreement with the Saudi Automotive Services Company to develop 20 hotels under the Super 8 brand.