JLL reports a thriving Saudi hotel market in Q3 2023

November 20,2023 0 Rita Ghantous

The third quarter of 2023 has been dynamic for the hospitality market in KSA.

The latest KSA Real Estate Market Overview by JLL reported key developments in Riyadh and Jeddah’s hotel markets that are shaping a positive trajectory for the kingdom’s burgeoning hospitality sector.

Riyadh’s Fairmont Ramla serviced apartments were the first project to be completed this year. With around 250 keys, it increased the total supply in the capital to approximately 21,000 keys in the capital. In contrast, Jeddah did not finalize any significant hotel projects during the same period. Thus, the total supply has remained at approximately 16,000 keys. Looking ahead, Riyadh plans to add nearly 1,000 keys. Notably, Jeddah plans to develop 470 keys over the remaining months of this year.

Saudi Arabia’s year-round events and openness to foreign visitors are driving robust growth in the hospitality sector. Riyadh Season, commencing in late October and extending until late December, will enhance hotel performance in the capital, especially after the traditionally slower summer season. During Q3, the hotel market displayed remarkable growth. The city-wide occupancy in Riyadh reached an impressive 60 percent for the year to August 2023. ADR also witnessed a substantial increase of 12 percent, reaching USD 188 and surpassing figures from the same period in the previous year. RevPAR experienced commendable growth, rising by 17 percent year-on-year to reach USD 113.

Meanwhile, Jeddah’s hospitality market maintained its robust performance, achieving a city-wide occupancy rate of 65 percent for the year to August 2023. During this period, ADR increased by 3 percent year-on-year, reaching USD 220. Furthermore, RevPAR recorded significant growth, up by 19 percent annually and amounting to USD 143.

This strong performance underscores the positive trajectory and robust investor sentiment in the kingdom’s hotel market. It is also fueled by a strategic event planning calendar and increasing demand from both domestic and international travelers.

For the full report, click here: http://bit.ly/3QSsxZd

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.