Six hotel chains boosting their presence in Saudi Arabia

As Saudi Arabia ramps up tourism and entertainment spending under its economic reform plans, hotel operators are rushing to boost presence in the country to capitalize on anticipated growth in demand.

According to a report in February by Tophotel projects, as many as 84 hotels out of the 143 under construction in Saudi Arabia are set to open this year, adding over 27,000 rooms to the market.

Of interest particularly are planned megaprojects like NEOM and the Red Sea tourism development, which hospitality companies are already looking to establish a presence in.

Argaam has compiled a list of international and regional hotel operators planning to enter or expand presence in the Kingdom.  

1) Hilton

Hilton plans to increase its Saudi properties from 10 to over 40 in the next five years, eyeing openings in Riyadh, Jeddah and Makkah, as well as secondary cities like Jubail and Khobar.

The hotel operator recently announced plans to open four new properties in Saudi Arabia by 2021, two of which will be in Jubail, while the other two will be in Khobar and King Abdullah Economic City.

Meanwhile, a new Hilton hotel in the Saudi capital of Riyadh is at an advanced stage and will open doors by Q3 2018.  

2) Intercontinental Hotels Group

InterContinental Hotels Group (IHG) this month signed a master development agreement with Saudi Arabia’s Al Hokair Group to open at least 10 Holiday Inn Express hotels over next 15 years.

The first 200-room Holiday Inn Express will open in Jeddah, closely followed by openings in major cities across the Kingdom.

Separately, IHG is also looking to open luxury hotels in Saudi Arabia's planned Red Sea tourism project, a company executive told The National.

The hospitality company plans to take its top brands, potentially the Intercontinental Resorts or Regent hotel, to the 30,000-square-kilometer megaproject, spread over a lagoon of 50 islands.

3) Marriott

Another player bullish on the Saudi hospitality market is Marriott International, which expects to attract $2 billion of investment in the Kingdom over the next four years.

The firm will nearly double its number of hotel rooms to about 12,500 from almost 6,800 now, Alex Kyriakidis, its Middle East and Africa president, recently told Reuters. Construction currently underway on the new rooms will cost $2 billion.

Marriott – which operates the Marriott, Ritz Carlton, Le Meridien and Sheraton brands – will manage 52 hotels in Saudi once work is complete, up from 23 now.

According to a recent company statement, Riyadh is Marriott’s largest market in the Kingdom with eight operating hotels and 15 in the pipeline.

The hotel operator will also enter Unaizah, King Abdullah Economic City, Half Moon Bay, Yanbu and Jubail. It will open its largest property in the country, Four Points by Sheraton Makkah Al Naseem, with 1,172 rooms in 2018.

4) Taj

Earlier in April, Saudi Arabia’s Umm Al Qura Development and Construction Company partnered with the Indian Hotels Company (IHCL) to open the first Taj hotel in Makkah.

The 340-key hotel will be developed as part of the King Abdul Aziz Road urban rejuvenation project. Located close to the Grand Mosque, it is scheduled to open in January 2023.

5) Rotana

Among regional hotel operators, UAE-based Rotana Hotels plans to operate 20 hotels in Saudi Arabia by 2030, Gulf News recently reported, citing company president and CEO Omer Kaddouri.

The company currently operates four hotels in the Kingdom and will begin operations on three more by year-end.

6) Cristal

Another UAE-based company, Cristal Group, recently opened two properties in Saudi Arabia: the Bayat Hotel by Cristal in the Southern Region in over 20 years, and the Bayat Suites by Cristal.

This year, the firm will also open the 270-room Cristal Amaken Hotel in Riyadh’s 2nd Industrial City.

Write to Jerusha Sequeira at jerusha.s@argaamnews.com