Colliers expects Riyadh hotel occupancy to hit 63%, Jeddah 54% in 2022

Riyadh city

Hotel occupancy rates in Riyadh and Jeddah are expected to rise to 63% and 54%, respectively, in 2022, according to Colliers International.

Meanwhile, hotel occupancy rates are projected to reach 59% in Khobar, 61% in Madinah and 52% in Makkah, the research firm said in its monthly report for MENA hotels.

Colliers indicated that Riyadh and Jeddah markets benefited from the Riyadh Season and the increasing consumer confidence.

Similarly, positive indicators such as the return of Hajj pilgrims improved the outlook Makkah and Madinah hotels.

High oil prices led to improved demand by Khobar and Dammam’s companies; however, increased travel abroad may reduce this impact.

The following table shows the expected occupancy rates in some of the major Saudi cities this year:

The majority of Arab markets witnessed an improvement in performance on an annual basis.

Nevertheless, geopolitical tensions, high oil prices, and inflation weighed on those markets, resulting in a less-than-expected recovery.

Also, increased travel abroad reduced the recovery rate in some domestically oriented markets.

Colliers asserted that the adherence to transparency practices with regard to mitigate the pandemic restrictions will lead to improving consumer confidence.

Occupancy rates of Dubai’s hotels are expected to range between 71% and 77%, while the expected rate in Abu Dhabi is likely to touch 64%.

Doha’s occupancy rate is likely to hit 70%, while rates in Manama and Muscat are estimated at 47% and 52%, respectively.