Number of hotel rooms in Jeddah, Saudi Arabia to double by 2018

Published on : Tuesday, May 17, 2016

Hotel Show Saudi ArabiaThe number of hotel rooms in Jeddah, Saudi Arabia is forecast to double by 2018 according to a new report.

The ‘Jeddah Hotel Market Overview’ report by JLL prepared ahead of The Hotel Show Saudi Arabia 2016 opening today (17th May 2016; 4pm-10pm) reveals that the current supply of 8,600 rooms (Q1 2016) in the city will double – with another 8,600 rooms forecast to be added to the market by 2018.

With a total stock of 17,200 hotel rooms estimated by 2018, major projects in the Jeddah pipeline include: The Ritz Carlton, Jeddah; Radisson Blu Al Salamah; Movenpick City Star; Elaf Galleria and Assila Hotel & Residence by Rocco Forte.

Christian Renz, Vice President for Sales and Marketing for Rocco Forte Hotels commented: “With the growth figures of Jeddah doubling, Jeddah was a clear choice for Rocco Forte Hotel’s development in the Middle East. The Kingdom of Saudi Arabia is also one of our strongest outbound markets worldwide for our European hotels, so we felt it important to have a presence in the region. The Alissa family, who are one of the most respected families in the region, approached Sir Rocco Forte to partner as they admired his hotel management style in the European properties where they had stayed. Both family companies, together we have built the Assila Hotel on the prestigious Tahlia Street, the first five star to open in almost ten years in the city.”

“Hotel occupancy rates in Jeddah are historically high,” added Christine Davidson, Group Event Director of the dmg events hospitality portfolio. “Saudi Arabia is an important market for developing business and leisure tourism as well as the dominant religious tourism sector. Jeddah is a gateway for pilgrims travelling to the holy cities of Makkah and Madinah, while its coastal location makes it popular with domestic tourists. Business tourism is fast developing, and infrastructure developments in the pipeline including expansion works on Jeddah’s King Abdulaziz International Airport will increase accessibility.”

AccorHotels Middle East own a significant margin of Jeddah’s hotel portfolio with nearly 600 operational rooms in the market at present, set to increase to over 3,000 hotel rooms in the coming years. Olivier Granet, Managing Director and Chief Operating Officer of AccorHotels Middle East commented: “We are on track to have 50 operational hotels in the Kingdom with over 13,500 rooms. By 2020 we are quintupling our network in Jeddah with a fivefold increase from three existing hotels to 15.”

Granet added: “In order to attract both business and leisure clientele, AccorHotels has been focusing on the development of multi-brand projects; especially clusters that comprise midscale and economy hotels and serviced apartments. A particularly large-scale project in Jeddah will introduce a Novotel, ibis and Adagio to Al Andalus Road, which I personally believe will become a local landmark as it combines office, retail and hospitality components in one of the city’s most vibrant areas.”

At The Hotel Show Saudi Arabia, global consulting firm Deloitte will offer further insights in to the Jeddah market discussing “Market performance, trends and projects in Jeddah and Makkah” as part of the Vision Conference programme for 2016.

The Hotel Show Saudi Arabia (17-19th May 2016; 4-10pm; Jeddah Centre for Forums and Events) is the only event where hospitality industry professionals can source everything needed to develop, build and maintain a hotel or restaurant in the Kingdom. Exhibitors for 2016 include show sponsors Samsung and LG Electronics.

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