The
report titled “Riyadh
Hospitality Market Outlook to 2023 - Growth in MICE Business and Surge in
Tourism Supporting Occupancy Rate of Hotel Industry”
provides information on overview of
hospitality market within Riyadh, factors influencing the hospitality market,
current and future demand and supply, market insight and performance, key
expected upcoming Hotel projects, key features and characteristics of Hotels in
Saudi Arabia, average daily / monthly / annual rental rates and revPAR of
hotels in Riyadh, Average daily occupancy rates of hotel in Riyadh, Riyadh
hospitality market outlook, opportunities and future development trends, what
gaps exist in Riyadh hospitality market, competitive analysis of major Hotels
within Riyadh. The report concludes with recommended branded operators, Recommendations
highlighting the success factors for developing luxurious resorts and Recommendations
for construction of a 3 star Hotel. 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 Hospitality market in Riyadh is
showing significant potential owing to improvement in tourism, surge in
personal disposable income among Saudi Nationals, developing infrastructure
capabilities, increasing influx of foreign guests and others. However there
exists an imbalance, in the market equilibrium skewed towards supply of hotels
in Riyadh. Both domestic as well as international tourists have been identified
as the major target audience for the hospitality sector in the capital city
Riyadh that are majorly looking for accommodation within premium hotels and
resorts. Apart from tourists, people also come for business events and meetings
(local / domestic and foreign expats) and prefer to book conference rooms and
exhibition halls for project meetings. Riyadh is also known as the financial
hub of the country as it consists of financial districts and business parks
which host major conferences and events.
Riyadh Hospitality Market Insight:
Hospitality
market of Riyadh faced a challenging economic / business environment during
2017-2018 owing to volatility / price fluctuations in crude oil after years of
relative stability. Apart from that, delays in the completion of hotel
infrastructure projects coupled with a decline in terms of business tourism
have created a negative impact on the market. However, the market recovered
during the year 2018 owing to several government initiatives which led to a
higher supply of hotel rooms in the capital city Riyadh.
Riyadh Hospitality Market Outlook:
Saudi
Arabia faced fluctuating crude oil prices during 2015-2017 which affected their
economy negatively. It recovered after 2018 majorly due to government
initiatives and change in policies. The diversification efforts led by the
Government of Saudi Arabia’s have led to a subsequent boost for employment and
its GDP outlook. Major hotel groups within Riyadh are further planning to start
open up hotels across the nation especially in the capital city Riyadh as they
aim to meet the ever growing demands of both domestic tourists and
international visitors on the account of major infrastructure projects and
easing visa requirements.
Over
the years, major brands have contributed to the supply of hotels in the KSA. Marriott
International has opened 2 Aloft Hotels (hotel chain owned by Starwood Hotels
and Resorts) in the country (in Riyadh and Dhahran), Rocco Forte Hotels opened
the Assila Hotel in Jeddah and in 2018 both Hilton and Swiss-Belhotel
International opened three hotels each. There is also interest from other large
groups such as Accor and InterContinental.
Recommendations Regarding Success Factors of
Developing Hotels
Location
is a factor of paramount importance in the hospitality sector. Location can
affect a Customer’s buying decision in many ways, Proximity to the Airport,
Connectivity within the city, proximity to Shopping malls and places of
Leisure/Sightseeing, the overall surroundings of the hotels, other
infrastructure/hotels located near the hotel and others are all factors people
consider with regards to location in the Hospitality sector. The design
of Hotels should be unique but elegant. Since Riyadh caters to mostly
high-profile customers, and thus should focus on comfort, elegance and grandeur.
Brands have been seen to use their Architecture, as marketing material. The
Architecture must complement the natural environment. It plays a massive role
in giving a unique and personalized experience to guests, regardless of a
hotel’s brand affiliation
Hoteliers in order to diversify their
business operations must try to identify their target customers i.e. origin of
their customers, income class and geography of their customers.
Competitive Analysis:
The
hospitality market within Riyadh was observed to be highly competitive in terms
of their offerings and the prices they offer. Each 3 star hotel has to compete in
order to gain a new customer, so the quality of offerings automatically
improves. Construction parameters and services offered become the basis for
competition. The existing hotels are offering attractive discounts on room
rates to increase the occupancy however at the cost of the ADRs, thus adding
significant pressure on margins.
Competition
via Hotel Type: Within Riyadh, the mid-market hotel segment is giving a stiff
competition to the luxury hotel segment, which has dominated the Riyadh
hospitality sector in terms of supply and pricing for a long period of time.
The mid-market hotel segment includes mid-range priced hotels with modern
amenities at lower costs. It has helped to generate market demand from emerging
countries thereby, increasing occupancy rates yet causing a downward pressure
on ADR
Key
Segments Covered:
By
Type of Hotels
One Star
Two Star
Three Star
Four Star
Five Star
Key
Target Audience
5 star, 4 star and 3 Star hoteliers
Investors in Hospitality Sector
Hospitality Industry Associations
Government/Regulatory Authorities
Ministry of Tourism
Time
Period Captured in the Report:
Historical Period: 2013-2018
Future Forecast: 2019-2023
Case
Studies Covered:
Hyatt Palace
Double
Tree –By Hilton
Mira
Trio Hotel
Carawan
Al Fahad Hotel
Al
Mashreq Boutique Hotel
Business
Inn Tahlia Hotel
Hotel
Novotel (Riyadh) Ibis Riyadh (Olaya Street)
Holiday
Inn (Olaya Riyadh)
Key Topics Covered in the Report
Factors
Influencing the Hospitality Market in Riyadh, KSA
Demand
and Supply Analysis for Riyadh Hospitality Sector
Riyadh
Hospitality Market Insight and Performance
Key
Expected Hospitality Projects in Riyadh
Key
Features and Characteristics of Hotels in Saudi Arabia
Average
Daily / Monthly / Annual Rental Rates And RevPAR of Hotels in Riyadh
Average
Daily Occupancy Rates of Hotel in Riyadh
Riyadh
Hospitality Market Outlook, Opportunities and Future Development Trends
Does
the Landscape of Hospitality in Saudi Arabia is Forecasted to be Positive and
Encouraging to Invest in this Sector?
What
Gaps Exist in Riyadh Hospitality Market?
Recommendations
Regarding Success Factors of Developing Hotels
Recommended
Branded Operators for Hospitality Sector in Riyadh
Recommendation
for Construction of 3 Star Hotels in Riyadh
Competitive
Analysis of Case Studies within Riyadh Hospitality Market
Case
Studies of Major Hotels in Riyadh
For more information on the research
report, refer to below link:
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Ankur Gupta, Head Marketing & Communications
+91-9015378249
