Reports released in conjunction with the opening of the Hotel Supplies Exhibition in Saudi Arabia—which opens its doors today, May 17, 2016, from 4 p.m. to 10 p.m.— that the current supply of 8,600 rooms (in the first quarter of 2016 in Jeddah) is set to double, with an additional 8,600 rooms expected to be added to the market by 2018.
17,200 hotel rooms
In this regard, Jones Lang LaSalle, which prepared a report on the state of the hotel market in Jeddah titled “Overview of the Hotel Market in Jeddah,” indicating that estimates suggest total supply will reach 17,200 hotel rooms by 2018, including major projects currently under construction in Jeddah such as The Ritz-Carlton Jeddah, Radisson Blu Al-Salamah, Mövenpick City Star, Elaf Galleria, and Rocco Forte’s Asila Hotel & Residences.
Rocco Forte Hotels
These projections stem from the rapid growth in Jeddah’s population and the development of its urban and economic sectors, In this regard, Christian Renz, Vice President of Sales and Marketing at Rocco Forte Hotels, noted that Jeddah was a clear choice for Rocco Forte Hotels” development projects in the Middle East. Saudi Arabia is also one of our strongest international markets worldwide for our European hotels; therefore, we felt it was important to have a tangible presence in the region, The Al-Issa family, considered one of the most respected families in the region, reached out to Sir Rocco Forte to form a partnership with him because they were impressed by his approach to hotel management at the European properties where they had stayed, Through the collaboration of both family-owned companies, we built the Asila Hotel on the prestigious Tahlia Street, the first five-star hotel to open in the city in nearly a decade."
Jeddah: Gateway for Pilgrims and Travelers
Given Jeddah’s strategic location as a vital gateway to the Kingdom, hotel occupancy rates have flourished in the city, which has historically been characterized by high rates, This is in addition to the Kingdom’s commercial and economic landscape, which is considered an important market for business development and leisure tourism, alongside the thriving religious tourism sector. Jeddah serves as a gateway for pilgrims traveling to the two holy cities of Mecca and Medina, and its coastal location further boosts its appeal to local tourists. Furthermore, business tourism is growing rapidly, and access to the city is being improved thanks to ongoing infrastructure development projects, including the expansion of King Abdulaziz International Airport in Jeddah."
”Accor" ... A Major Hotel Project in Jeddah
For her part, Olivier Granet, Managing Director and Chief Operating Officer of Accor Middle East, revealed the company’s intention to expand its portfolio to more than 50 operating hotels in the Kingdom, comprising more than 13,500 rooms. ”By 2020, we plan to expand our network in Jeddah fivefold, from the current three hotels to 15," Granite also noted the development of a major project consisting of three hotels under the Novotel, Ibis, and Adagio brands on Al-Andalus Road, She explained that this project will become a prominent local landmark because it combines office, retail, and hospitality elements in one of the city’s most dynamic and vibrant areas," She noted that major companies are seeking to attract both business travelers and guests seeking leisure and relaxation, Granite noted that Accor has focused on developing multi-brand projects, particularly those comprising mid-range and economy hotels as well as furnished apartments.
Accor Middle East holds a significant share of Jeddah’s hotel portfolio, with approximately 600 hotel rooms currently operating in the market, and this number is set to rise to more than 3,000 hotel rooms in the coming years.
