A report conducted by Colliers International for the hospitality market in Saudi Arabia has expected major upcoming developments in the next few months, which should enhance the market’s performance.
The report has shed the light on the market performance in the big five cities of the kingdom in the second quarter of the year.
As for Riyadh hospitality sector, the market continued to slide in terms of revenue per available room (RevPAR) in the three months ended in June.
The report attributed the drop in revenues to a fall in demand and continued rate sensitivity from the key corporations and governmental segments.
But the report also noted that the market outlook in the capital city could be on an upward trend, driven by new projects like the planned entertainment city, which could spur the demand in the sector.
Moving to Jeddah, the report noted that the market showed resilience in Q2 despite a fall in terms of RevPAR.
The report expected Jeddah’s hospitality market to be the best performer in the kingdom, boosted by new projects like King Abdul Aziz Airport.
The market is expected to receive a boost from Eid al-Adha holidays, according to Colliers International report.
“The upcoming Eid holidays and school vacations in KSA, followed by strong growth in the Chinese market, will keep the RevPAR in line with the rates of last year without declines,” the report said.
As for Makkah, the report projected a market decline in the short term; however, the increased supply, improved accessibility via Haramin high-speed railway, and the expansion of the holy mosque are all good factors for the sector in the long term.
Colliers International is a global company in commercial and real estate services with over 15,000 employees operating in 68 countries.