Projecting Hospitality Growth | Saudi Arabia Leads The World
LONDON: Saudi Arabia’s hospitality sector is the fastest-growing among the 50 most populated countries in the world, reporting 73,057 rooms across the three phases of the hotel pipeline, and projecting a 67.1 percent increase in room supply over the next three years, according to STR’s AM: PM platform.
Of the total rooms in the pipeline as of March 11, 16,965 were scheduled to come online over the duration of 2021. The 67.1 percent increase assumes completion of all projects in construction, final planning, and planning.
“Saudi Arabia’s growth aspirations, along with the strength of other Middle East hospitality markets such as Qatar and the UAE, is further validation that the region continues to emerge as a global tourist destination,” said Philip Wooller, STR’s area director for the Middle East/Africa. “Such growth is a testament to the strength and prospectus of the nation’s strong cultural and economic resources.”
While a significant portion of Saudi Arabia’s pipeline activity is concentrated in Makkah (28,052 rooms under development), several other submarkets across the country are expected to increase hotel supply by 50 percent or more.
- Makkah: 28,052 rooms (+81 per cent)
- Saudi Arabia Regional: 13,996 (+80 per cent)
- Riyadh: 13,165 rooms (+75 per cent)
- Jeddah: 11,198 (+97 per cent)
- Al Khobar & Dammam: 5,418 (+47 per cent)
- Madinah: 1,228 (+7 per cent)