According to JLL MENA’s ‘The KSA Real Estate Market-Q3 2020’ report, Riyadh saw the delivery of 400 keys in Q3 2020, bringing the total stock to 16,000.
Meanwhile, only 84 keys were added to Jeddah’s hotel stock, which increased the total slightly to 14,000. Around 700 and 200 keys are expected to deliver over Q4 in Riyadh and Jeddah respectively.
Riyadh’s performance levels traded higher than any of the other Saudi cities. Occupancy rates in the YT August 2020 decreased by 300 bp to register 51 percent y-o-y, while average daily room rates (ADR’s) dropped only 1 percent to register USD 153 (SAR 573). Revenue per available room declined 7 percent to reach USD 78 (SAR 293).
Meanwhile, Jeddah saw more significant annual declines. As such, occupancy rates dropped significantly to reach 38 percent, while ADR’s and RevPar declined 33 percent and 62 percent to register USD 181 (SAR 679) and USD 61 (SAR 229) respectively.
While the hospitality industry remains challenged in the short term, in the long-term however, and in light of the agreement between the Tourism Development Fund and local banks to finance SAR 160 billion (USD 43 billion) of tourism projects, it is expected that the construction activity will speed up while improving infrastructure, and increasing the number of hotel rooms in line with Vision 2030.Add to Favorites