Tourism & Hospitality | Wednesday 7 February, 2018 9:30 am |

Reinforcing its commitment to supporting Saudi Arabia’s economic growth, and its tourism and hospitality sector in particular, Rotana, one of the leading hotel management companies in the region with hotels across the Middle East, Africa and Turkey, has laid out plans for aggressive expansion of its portfolio in the Kingdom. With the aim of contributing to the country’s efforts to achieve its goals outlined in the Saudi Vision 2030, and its initiatives aimed at promoting the domestic tourism sector, including the Red Sea coastline project, Rotana has planned an impressive development pipeline of five hotels in major cities across the country to add more than 1,150 keys to its already strong portfolio, the company’s Chief Operating Officer Guy Hutchinson said on the sidelines of the Rotana Hotels 2018 GCC Roadshow.

 

With its rapidly growing economy, the Kingdom is one of the fastest growing markets for Rotana, which currently operates four hotels and 1,258 rooms in Riyadh, Jeddah and Makkah. Since their inception, the hotels have witnessed strong growth in terms of occupancy rate.

 

The Kingdom has seen tremendous growth in the number of visitor arrivals in recent years driven by major social and economic reforms and increased infrastructure development. As a result, the hospitality sector in the country has been witnessing a major transformation in terms of demand and product mix. Along with high-end properties, the demand for mid-market offering has increased considerably, and in order to address this supply gap, Rotana has planned to open four new hotels under “Centro by Rotana” brand in Riyadh, Jeddah, Al Khobar and Medina. Another hotel under the development, Dana Rayhaan by Rotana, will open in the city of Dammam. The company already has more than 500 keys at two operating hotels for budget-conscious travelers in Riyadh and Jeddah.

 

“Travel and tourism continued to be one of the world’s fastest-growing sectors in 2017, and the outlook for the industry in 2018 remains robust, given the anticipated increase in the number of travelers from developing and emerging countries and rising disposable income of people coupled with their yearning for unique experiences. Increasing airline competition that has brought down the cost of travel and strong demand for business travel will further drive growth in the sector. Driven by recent reforms and the country’s endeavors to diversify its economy, the hospitality sector in the Kingdom is headed for a growth it has never seen. The initiatives such as $500 billion Red Sea coastline project and plans to issue tourism visa will accelerate the country’s economic diversification to achieve less reliance on oil and transform it into a global tourism destination” said Guy Hutchinson, Chief Operating Officer of Rotana.

 

“With the government’s continuing efforts to improve ease of doing business and massive investments in infrastructure, the demand for corporate travel and accommodation has been increasing exponentially. We have diversified our portfolio to match needs of travelers of all kinds, and with our strong market presence and unique offering, Rotana is well-positioned to capitalize on the booming growth of the sector in the Kingdom,” Hutchinson concluded.

 

In 2017, Saudi Arabia witnessed a phenomenal increase of 13% in hotel room supply to clock a total of 44,200 hotel rooms, rising from 39,000 keys in 2016, and It is forecasted that the country will add 11,600 rooms in 2018.