The latest data from hotel industry monitoring firm STR shows the Kingdom leads the Middle East and Africa’s hotel building activity, with 42,033 hotel rooms under construction as of March, accounting for 35.1 percent of the 119,505 being built in the region.
That places Saudi Arabia only after China and the US in the global hotel construction market.
But that’s not all. Under Vision 2030, the Kingdom’s hotel sector is expected to grow further, and have 310,000 hotel rooms by 2030 with an investment size of $110 billion, data released by Knight Frank indicated.
Not surprisingly, the Kingdom’s hospitality industry is witnessing steady growth in key performance indicators.
Take Riyadh’s hotel occupancy rate, for instance. It hit 75.5 percent in February, the highest figure since 2008, according to data released by STR in March.
Compared to 2019, the occupancy in February jumped 23.4 percent, the average daily rate rose 34 percent to SR801.46 ($213.46), and the revenue per available room increased 65.3 percent to SR605.06.
Additionally, Saudi Arabia’s hotel segment is projected to generate $2.51 billion in revenue this year and is expected to reach $3.02 billion by 2027, according to Statista.
“The hospitality industry is undoubtedly poised for accelerated growth and the region is currently leading the travel and hospitality sector globally,” Guy Hutchinson, president and CEO of hospitality group Rotana