The report titled “Potential
Investment Opportunities in the Riyadh Luxurious Resorts” provides information on overview of
hospitality market within Riyadh, factors influencing the hospitality market in
Riyadh region, current and future demand and supply, market insight and
performance, key expected upcoming luxury resort projects, potential demand on
long-term lease and annual subscription, key features and characteristics of
luxurious resorts in Saudi Arabia, competitive analysis of major luxurious
resorts within Riyadh, target customers and recommended branded operators. The
report concludes with investment opportunities, success factors, gap analysis
and future outlook. The report is useful for 5 star as well as 4 star
hoteliers, investors in Riyadh hospitality Sector, hospitality industry
associations, government / regulatory authorities and Ministry of Tourism.
Current and
Future Demand and Supply:
The market showcased a strong potential owing
to increasing personal disposable income among Saudi Nationals, improving
tourism as well as leisure activities of people, developing infrastructure
capabilities, increasing influx of foreign guests and others. Increasing supply
of luxury resorts in the KSA is potentially threatening the dominance of the
UAE in the high-end hospitality market. As the Riyadh market remains dominated by the luxury
hospitality sector, the entry of mid-market hotel brands can lead to rise in
competition within the overall hospitality market in the near future.
Riyadh
Hospitality Market Overview:
Riyadh hospitality market has been undergoing
a transition with austerity measures in KSA, plunge in crude oil prices and
rise in Iqama fees and introduction of dependent fees due to Saudization. Some
of the other factors include increasing number of tourist arrivals, air
transport infrastructure, reception and weddings, influx of luxury hotels
around Riyadh, rising exhibitions, events, trade fairs and entertainment
centers and ultra-high net worth individuals.
Major target
audience of luxurious resorts within Riyadh
city includes the local Saudi audience who come along with their families for a
vacation and book high-end villas for their premium services such as private
pool, garden, LCD, kitchen equipments and others.
Market
Insight and Performance:
After years of relative stability, the
luxurious resort market in Riyadh city faced a difficult business environment
in 2017 owing to price fluctuations in crude oil coupled with decline in
corporate visitation along with new hotels and resort project delays. The
market recovered in 2018 majorly with government economic reforms and reduction
in ongoing hotels and resorts project delays which led to a higher supply of
resort villas in Riyadh.
Introduction of internationally
branded hotel rooms and expected associations / tie-ups between high-end brands
and resorts can boost the market growth in the near future. The average daily
occupancy rate of luxurious resorts within Riyadh is estimated to increase in
the near future. The challenges in maintaining a higher occupancy will have a
direct impact on older resort properties such as Vivienda Granade Resort,
Al-Faisaliah Resort and Spa, Braira Hitin and others.
Potential
Demand on Long-term Leasing of Resorts in Riyadh
The trend of outsourcing luxurious resort is
not that popular in Riyadh as the guest usually visit resort for an exclusive
experience and hence there are limited chances of repeat visit. In accordance
with the 21st International Hotel Investment Forum 2018, multiple branded
operators have showcased interest towards agreeing on long term hotel leasing
over the world, including the Kingdom of Saudi Arabia (KSA) in order to expand
their business operations for instance, Radisson Collection. In
line with this, other branded operators are seeking to embark their emergence
into luxury resort segment in Riyadh to broaden their portfolio.
Competitive
Analysis:
Competition within the Riyadh luxurious
resorts market was observed to highly fragmented along with the presence of
limited high-end/premium resorts in the capital city. These resorts compete on
the basis of various parameters such as target audience, resort facilities /
amenities, land area, location of the resort, type of villas, room supply,
average daily occupancy rate, average daily rent per night and others.
Riyadh
Hospitality Market Future Outlook, Opportunities and Development Trends
Future outlook of hospitality market is
expected to be positive in Saudi Arabia due to various development initiatives
in the capital city Riyadh. Apart from the 2 planned mega-malls, the recently
announced Entertainment City project led by the public fund will help boost the
tourist leisure demand, especially from Saudi Nationals. Continued new supply
of hotel/resort rooms and the market’s heavy reliance on business travel
associates will also contribute to the KSA hospitality industry market
performance in the near future.
Key Segments Covered:
By Type of Rented Units
·
First Class
·
Second Class
·
Third Class
·
Four Class
By Type of Hotels
·
One Star
·
Two Star
·
Three Star
·
Four Star
·
Five Star
Key Target Audience
·
5 star and 4 star hoteliers
·
Investors in Hospitality Sector
·
Hospitality Industry Associations
·
Government/Regulatory Authorities
·
Ministry of Tourism
Time Period Captured in the Report:
·
Historical
Period: 2012-2017
Ø Muharram (22
Sep – 21 Oct 2017)
Ø Safar (22
Oct – 21 Nov 2017)
Ø Rabi' I (22
Nov – 21 Dec 2017)
Ø Rabi' II (22
Dec 2017 – 21 Jan 2018)
Ø Jumada' I
(22 Jan – 21 Feb 2018)
Ø Jumada' II
(22 Feb – 21 Mar 2018)
Ø Rajab (22
Mar – 21 Apr 2018)
Ø Sha'ban (22
Apr – 21 May 2018)
Ø Ramadan (22
May – 21 June 2018)
Ø Shawwal (22
Jun – 21 July 2018)
Ø Dhul-Qadah
(22 Jul – 21 August 2018)
Ø Dhul-Hijjah
(22 Aug – 21 Sep 2018)
·
Future
Forecast: 2023
Case Studies Covered:
·
Vivienda
Resort (Granada Branch)
·
NOFA
Resort (Radisson Collection)
·
Al
Faisaliah Resort and Spa
·
Rest
Resort
·
Davli
Resort
·
Braira
Resort (Hitin Branch)
Key Topics Covered in the Report
·
Executive Summary
·
Research Methodology
·
Riyadh Hospitality
Market Overview
·
Factors Influencing the
Hospitality Market in Riyadh Region
·
Current and Future
Demand and Supply, 2018 and 2023
·
Market Insight and
Performance
·
Average
Daily/Monthly/Annual Rental Rates of Luxurious Resorts in Riyadh
·
Average Daily Occupancy
Rates of Resorts in Riyadh
·
Riyadh Hospitality
Market Future Outlook, Opportunities and Development Trends
·
Key Expected Upcoming
Luxury Resort Projects in Riyadh
·
Does the Landscape of
Hospitality in Saudi Arabia is forecasted to be Positive and encouraging to
invest in this Sector?
·
Recommendations
Regarding Success Factors of Developing Luxurious Resorts
·
Key Features and
Characteristics of Luxurious Resorts in Saudi Arabia
·
Recommended Branded
Operators for Luxurious Resorts
·
Targeted Customers of Luxurious
Resorts
·
Potential Demand on
Long-term Lease and Annual Subscription Resorts in Riyadh
·
Recommendation for Type
of Facilities to be Developed within Luxurious Resorts
·
Competitive Analysis of
Major Luxurious Resorts in Riyadh
For more information on the research report, refer to below link:
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