JLL reports KSA’s strong performance in the hospitality sector

September 15,2023 0 Rita Ghantous

In the ever-evolving landscape of Saudi Arabia’s hospitality and tourism sectors, recent data from JLL paints a vivid picture of growth and innovation as the government’s investment in tourism development drives the kingdom’s strong performance in the hospitality sector.

F&B sector

F&B and entertainment concepts continued to drive footfall in retail developments. Latest available data from Saudi Central Bank showed that for the period of January to May 2023, point of sales transactions in the “Restaurant & Café” category increased in volume by 29 percent and in value by 16 percent when compared to the same period last year.

Hotels sector

These factors largely underpinned the strong performance across both Riyadh and Jeddah’s hospitality markets last quarter.
No new hotel projects were completed in either Riyadh or Jeddah during Q2 2023, keeping the total existing stock stable at 21,000 keys in the capital and 16,000 keys in Jeddah. Around 1,400 keys are scheduled to be handed over in Riyadh during the remainder of this year. For the same period, 600 keys are planned to be completed in Jeddah.
The Tourism Development Fund announced signing an agreement with the General Authority for Small and Medium Enterprises as part of efforts to offer support and expand SME operations in the tourism sector. The government has made a significant effort to attract investment to the kingdom through such initiatives and boost the tourism sector in the long run. Other efforts to revamp the tourism sector in the kingdom include various new visa reforms, increasing the overall connectivity through accessing new markets and hosting a well-planned calendar of events to highlight several tourist attractions in the country. These factors largely underpinned the strong performance of the hospitality markets in both cities during the last quarter. The latest available data from STR shows that Riyadh’s occupancy reached 62 percent and the average daily rate (ADR) climbed to USD 196 for year to (YT) June 2023, which led to revenue per available room (RevPAR) rising by 15 percent y-o-y to USD 120. Similar improvements were also noted in Jeddah’s hospitality market. Occupancy rate increased to 64 percent for YT June 2023 and ADR rose by 4 percent to reach USD 215 when compared to the same period last year. This consequently resulted in RevPAR increasing by 21 percent y-o-y to reach USD 137 for YT June 2023.

Tourism sector

F&B and entertainment concepts continued to drive footfall in retail developments. The latest available data from Saudi Central Bank showed that for the period of January to May 2023, point of sales transactions in the “Restaurant & Café” category increased in volume by 29 percent and in value by 16 percent when compared to the same period last year.

For the full report: https://bit.ly/3OVxK07

.jll.com

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About author

Rita Ghantous

Publication Executive

Rita Ghantous is a hospitality aficionado and a passionate writer with over 9 years’ experience in journalism and 5 years experience in the hospitality sector. Her passion for the performance arts and writing, started early. At 10 years old she was praised for her solo performance of the Beatles song “All My Love” accompanied by a guitarist, and was approached by a French talent scout during her school play. However, her love for writing was stronger. Fresh out of school, she became a freelance journalist for Noun Magazine and was awarded the Silver Award Cup for Outstanding Poetry, by The International Library of Poetry (Washington DC). She studied Business Management and earned a Masters degree from Saint Joseph University (USJ), her thesis was published in the Proche-Orient, Études en Management book. She then pursued a career in the hospitality industry but didn’t give up writing, that is why she launched the Four Points by Sheraton Le Verdun Newsletter. Her love for the industry and journalism led her to Hospitality Services - the organizers of the HORECA trade show in Lebanon, Saudi Arabia, Kuwait and Jordan, as well as Salon Du Chocolat, Beirut Cooking Festival, Whisky Live and other regional shows. She is currently the Publications Executive of Hospitality News Middle East, Taste & Flavors and Lebanon Traveler. It is with ultimate devotion for her magazines that she demonstrates her hospitality savoir-faire.