While the total number of rooms in international branded properties in the Kingdom reached 59.6 thousand rooms by the end of the second quarter of 2021, an increase of 6.05% compared to the number of rooms in the same period last year, a recent report predicted that the available supply of rooms in the Saudi market of international branded properties will increase at a compound annual growth rate of about 11% over 4 years between 2021 and 2023, adding 17 thousand new rooms to the local market during that period. During the comparison period, occupancy rates increased in Jeddah, Dammam and Al Khobar and declined in Makkah, Madinah and Riyadh.


Available Supply

According to a report by Colliers, a real estate services and advisory firm on the latest hotel market developments in the Middle East and North Africa, Khobar, Jeddah and Makkah recorded the highest increase in available supply during the second quarter of 2021 year-on-year, with a growth of 10.2% in Al Khobar, 8.9% in Jeddah and 7.3% in Makkah.

Occupancy Rates

Occupancy rates in Jeddah hotels increased by 33% year-on-year versus a decline of 32% during the corresponding quarter of 2020, and in Dammam and Khobar by 3%, versus a decline of 4% in Q2 2020 year-on-year. Rates in Makkah declined by 43% vs. 45% during the corresponding quarter of 2020, in Medina by 24% vs. 40% decline in the corresponding period last year, and in Riyadh by 8% vs. 4% in Q2 2020.

Average daily rate

The average daily rate increased during the second quarter of 2021 in hotels in Makkah, Jeddah, Dammam and Al Khobar by 70%, 26% and 3% respectively, while in Riyadh and Medina it decreased by 8% and 4% respectively.

Riyadh and Medina decreased by 8% and 4% respectively.

An average daily rate increased during the second quarter of 2021.