Dubai, United Arab Emirates – Professional services and investment management firm, Colliers, has revealed key Saudi Arabia market insights ahead of the Future Hospitality Summit (FHS) to be held in Riyadh on May 24-25, 2022, co- organized by The Bench, MEED and the Saudi company SEMARK.
Under the theme Reimagined HorizonsFHS Saudi Arabia will bring together government leaders, hotel investors, owners, developers and operators to discuss the future of hotel development, destination impact, aviation, sustainability, investment in restoration and human capital.
The hotel sector in Saudi Arabia is well on its way to recovery from the pandemic. Events and campaigns such as Riyadh season, as well as growing consumer confidence in travel, have benefited both Riyadh and Jeddah as key travel hubs in the Kingdom in the second half of 2021, and this is expected to continue to have a positive impact on hotel demand in 2022. The forecast occupancy for 2022 in Riyadh is 65%, with 54% forecast for Jeddah, representing an increase of 12% and 7% respectively.
On the hotel supply side, Saudi Arabia saw a 4% 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, representing a 15% increase over the same period last year, surpassing both the United Arab Emirates with an expected increase 3% and Egypt with growth of 8%. About 8,900 keys are expected to enter the Saudi market this year.
Along with strong industry performance and prospects for 2022 in the Kingdom, there have been numerous announcements for new hotel projects that will drive growth and development in Saudi Arabia, including:
- Diriyah Gate Development Authority (DGDA) unveiled its vision for Diriyah Squarethe commercial heart of its SAR 190 billion [US $ 50 Billion] The Diriyah giga project on the outskirts of Riyadh, Kingdom of Saudi Arabia, is expected to open by 2024. To date, 16 international hotel brands have been confirmed at the Diriyah Gate Development and it is expected that there has 38 in total.
- The 15 billion US dollars AlUla Master Plan will be developed in three phases in 2023, 2030 and 2035. The plan involves a wide range of initiatives in the fields of archaeology, tourism, culture and education, as well as the arts and reflects the objectives of 2030 vision for economic diversification, local community empowerment and heritage. preservation. By 2035, the site will have 9,400 hotel rooms and 2 million visitors per year are expected upon completion.
- The AMAALA coastal development project will include 30 hotels and 3,000 hotel rooms. The large-scale mixed-use project is expected to receive approximately one million visitors per year.
- The US$13 billion (SAR 50 billion) mega-development project Asser Tourism Master Plan is poised to transform the Aseer region on the Red Sea coast into a tourism hub, which is expected to attract over 10 million domestic and international visitors by 2030. The project, themed ‘The Highlands of Arabia’, aims to be a sustainable tourist destination offering mid-range experiences. The region, known for its agricultural sector, is gradually transforming into a modern tourist and hotel landmark, emphasizing its high peaks and natural resources.
Christopher Lund, Executive Director and Head of Hotels for Colliers MENA, will lead a session on the topic of Tourism Growth at FHS Saudi Arabia titled: “How the Tourism Development Fund (TDF) is moving the tourism sector in Saudi Arabia from partnerships to new financing concepts”, with the panelists Marko Vucinic, Director of Hospitality and Real Estate Development at TDF; Siegfried Nierhaus, Vice President Middle East at Deutsche Hospitality; and Elie Milky, vice president of development at Radisson Hotel Group. Prior to his session, Lund commented: “We see that Saudi developers place great importance on finding the right partner and operator for their hotel projects, aiming to have the latest and strongest concepts and the best performing properties in the market.”
Looking forward to bringing back the second edition of the FHS Saudi Arabia in a new format, Jonathan Worsley, chairman of investment conference organizer The Bench, said: “We are delighted to be back in the Kingdom later this month after the success of the first Future Hospitality Summit in October 2020 with the Saudi Ministry of Tourism and the G20 Secretariat and three years of organization of the Saudi Hotel Investment Conference (SHIC).The interest we are seeing in this year’s event is exceptional, which speaks to the great vision and ambition for tourism in the Kingdom. 2030 sets the stage for an incredibly bright future for the industry, and with the multitude of investment opportunities arising in Saudi Arabia, we seek to provide a unique and vital opportunity for the hotel investment community to come together and Get crucial insights from key dignitaries and industry leaders involved in the Kingdom’s hospitality market.
For more information and to view the full FHS Saudi Arabia schedule, please visit https://www.futurehospitalitysummit.com/
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FHS Saudi Arabia
Date: May 24-25, 2022
Location: Riyadh Airport Marriott Hotel, Riyadh, Saudi Arabia
Sponsors: Dur Hospitality as strategic partner; Tourism Development Fund (TDF) as enabling partner; Accor, Construction Products Holding Company (CPC), Hilton, Jumeirah Hotels & Resorts, Radisson Hotel Group and The Red Sea Development Company as platinum sponsors; Diriyah Gate Development Authority, IHG Hotels & Resorts, Marriott International, NEOM, Rotana, Royal Commission for AlUla and Taiba Investments as Emerald sponsors; Aleph Hospitality, CBRE, Colliers, Compass Project Consulting, ELAF Group, ENVI Lodges, GG&Grace International, Insignia, Interior 360, Keane, Knight Frank, Leslie, Louvre Hotels Group, LXA, MAPAL, OBMI, Sophos Hotels SA, SSH, STR, The Indian Hotels Company Limited and Voltere as Gold Sponsors; Deutsche Hospitality, HVS and Katch as Silver Sponsors.
FHS Middle East
Date: September 19-21, 2022
Location: Madinat Jumeirah, Dubai, United Arab Emirates
Sponsors: Jumeirah Hotels & Resorts as host sponsor; Tourism Development Fund (TDF) as enabling partner; Accor, Dur Hospitality, Hilton and Radisson Hotel Group as platinum sponsors; Emaar Hospitality, IHG Hotels & Resorts, Marriott International, NEOM, Rotana, SMIT Morocco and Taiba Investments as Emerald sponsors; Aleph Hospitality, CBRE, Colliers, Compass Project Consulting, ENVI Lodges, Insignia, Interior 360, Ishraq Hospitality, Knight Frank, Louvre Hotels Group, LXA, MAPAL, Minor Hotels, OBMI, QUO, SSH, STR, The Indian Hotels Company Limited and Voltere as gold sponsors; Deutsche Hospitality, HVS and Katch as Silver Sponsors.
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