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Real Estate Mgmt & Dev't
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Although the hospitality market in Saudi Arabia experienced a challenging year in 2019 compared to previous years, the long-term outlook for the market remains positive, according to Deloitte’s Middle East Real Estate Predictions: KSA Hospitality Market 2019 report.
The Deloitte report explores a number of key hospitality global trends and disruptors that will impact the hospitality market in Saudi Arabia and the wider region, including an increased focus on data protection and cyber security and the use of Artificial Intelligence (AI).
The report stated that the overall performance in Makkah improved compared to the same period last year. Occupancy saw a 10 percent increase, reaching 68 percent in the first half of 2019.
The hotel market in the Dammam and Al Khobar region saw a 10 percent increase in occupancy, in the first half of 2019, compared to the same period last year. However, average daily rates (ADRs) continued to soften, with a 17 percent decline over the same period.
Average occupancy levels in Riyadh saw a 5 percent increase compared to the same period last year, whilst increasing supply and competition led to a reduction in ADR by 10 percent.
While occupancy levels in Jeddah remained stable, increasing supply and competition continued to drive reductions in ADR compared to the same period last year.
“Overall the long-term outlook for the key hospitality markets in Saudi Arabia remains positive as diversification efforts, social reforms and government led investments in infrastructure, entertainment and the tourism sector materialize,” Dunia Joulani, Head of Travel, Hospitality and Leisure, Deloitte Middle East said.
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