Riyadh Hospitality Market Outlook to 2023
Growth in MICE Business and Surge in Tourism Supporting Occupancy Rate of Hotel Industry
Region:Middle East
Product Code:KR825
June 2019
126
About the Report
Both domestic as well as international tourists have been identified as the major target audience for the hospitality sector in the capital city Riyadh that are majorly looking for accommodation within premium hotels and resorts. Apart from tourists, people also come for business events and meetings (local / domestic and foreign expats) and prefer to book conference rooms and exhibition halls for project meetings. Riyadh is also known as the financial hub of the country as it consists of financial districts and business parks which host major conferences and events.
Riyadh Hospitality Market Insight: Hospitality market of Riyadh faced a challenging economic / business environment during 2017-2018 owing to volatility / price fluctuations in crude oil after years of relative stability. Apart from that, delays in the completion of hotel infrastructure projects coupled with a decline in terms of business tourism have created a negative impact on the market. However, the market recovered during the year 2018 owing to several government initiatives which led to a higher supply of hotel rooms in the capital city Riyadh.
Riyadh Hospitality Market Outlook: Saudi Arabia faced fluctuating crude oil prices during 2015-2017 which affected their economy negatively. It recovered after 2018 majorly due to government initiatives and change in policies. The diversification efforts led by the Government of Saudi Arabia’s have led to a subsequent boost for employment and its GDP outlook. Major hotel groups within Riyadh are further planning to start open up hotels across the nation especially in the capital city Riyadh as they aim to meet the ever growing demands of both domestic tourists and international visitors on the account of major infrastructure projects and easing visa requirements.
Over the years, major brands have contributed to the supply of hotels in the KSA. Marriott International has opened 2 Aloft Hotels (hotel chain owned by Starwood Hotels and Resorts) in the country (in Riyadh and Dhahran), Rocco Forte Hotels opened the Assila Hotel in Jeddah and in 2018 both Hilton and Swiss-Belhotel International opened three hotels each. There is also interest from other large groups such as Accor and InterContinental.
Recommendations Regarding Success Factors of Developing Hotels: Location is a factor of paramount importance in the hospitality sector. Location can affect a Customer’s buying decision in many ways, Proximity to the Airport, Connectivity within the city, proximity to Shopping malls and places of Leisure/Sightseeing, the overall surroundings of the hotels, other infrastructure/hotels located near the hotel and others are all factors people consider with regards to location in the Hospitality sector.
The design of Hotels should be unique but elegant. Since Riyadh caters to mostly high-profile customers, and thus should focus on comfort, elegance and grandeur. Brands have been seen to use their Architecture, as marketing material. The Architecture must complement the natural environment. It plays a massive role in giving a unique and personalized experience to guests, regardless of a hotel’s brand affiliation Hoteliers in order to diversify their business operations must try to identify their target customers i.e. origin of their customers, income class and geography of their customers.
Competitive Analysis: The hospitality market within Riyadh was observed to be highly competitive in terms of their offerings and the prices they offer. Each 3 star hotel has to compete in order to gain a new customer, so the quality of offerings automatically improves. Construction parameters and services offered become the basis for competition. The existing hotels are offering attractive discounts on room rates to increase the occupancy however at the cost of the ADRs, thus adding significant pressure on margins.
Competition via Hotel Type: Within Riyadh, the mid-market hotel segment is giving a stiff competition to the luxury hotel segment, which has dominated the Riyadh hospitality sector in terms of supply and pricing for a long period of time. The mid-market hotel segment includes mid-range priced hotels with modern amenities at lower costs. It has helped to generate market demand from emerging countries thereby, increasing occupancy rates yet causing a downward pressure on ADR.
Key Topics Covered in the Report
- Factors Influencing the Hospitality Market in Riyadh, KSA
- Demand and Supply Analysis for Riyadh Hospitality Sector
- Riyadh Hospitality Market Insight and Performance
- Key Expected Hospitality Projects in Riyadh
- Key Features and Characteristics of Hotels in Saudi Arabia
- Average Daily / Monthly / Annual Rental Rates And RevPAR of Hotels in Riyadh
- Average Daily Occupancy Rates of Hotel in Riyadh
- Riyadh Hospitality Market Outlook, Opportunities and Future Development Trends
- Does the Landscape of Hospitality in Saudi Arabia is Forecasted to be Positive and Encouraging
to Invest in this Sector? - What Gaps Exist in Riyadh Hospitality Market?
- Recommendations Regarding Success Factors of Developing Hotels
- Recommended Branded Operators for Hospitality Sector in Riyadh
- Recommendation for Construction of 3 Star Hotels in Riyadh
- Competitive Analysis of Case Studies within Riyadh Hospitality Market
- Case Studies of Major Hotels in Riyadh
Products
Key Target Audience
- 5 star, 4 star and 3 Star hoteliers
- Investors in Hospitality Sector
- Hospitality Industry Associations
- Government/Regulatory Authorities
- Ministry of Tourism
Time Period Captured in the Report:
- Historical Period: 2013-2018
- Future Forecast: 2019-2023
Companies
Key Segments Covered:
By Type of Hotels
- One Star
- Two Star
- Three Star
- Four Star
- Five Star
Case Studies Covered:
- Hyatt Palace
- Double Tree –By Hilton
- Mira Trio Hotel
- Carawan Al Fahad Hotel
- Al Mashreq Boutique Hotel
- Business Inn Tahlia Hotel
- Hotel Novotel (Riyadh)
- Ibis Riyadh (Olaya Street)
- Holiday Inn (Olaya Riyadh)
Table of Contents
1. Executive Summary
2. Research Methodology
2.1. Market Definitions
2.2. Research Approach
2.3. Limitations
3. Factors Influencing the Hospitality Market in Riyadh, KSA
3.1. Rise in International Arrivals and Domestic tourists
3.2. Dominance of Business Tourism and Events in Riyadh
Business Tourism in Riyadh
Events and Entertainment in THE Riyadh
3.3. Government Initiatives Towards Tourism
3.4. Presence of Branded Hotel Operators
3.5. Increase in Tourist Expenditure
3.6. Tourism Contribution towards GDP of Saudi Arabia
3.7. Other Factors (Economical Factors, Geopolitical Factors, Technological Factors and Cultural Factors)
4. Demand and Supply Analysis for Riyadh Hospitality Sector
4.1. Demand and Supply dynamics
4.2. Hospitality Demand in Riyadh
Current and future Demand for Hotel rooms in Riyadh
Factors affecting demand
Demand and Occupancy Rates
Pricing Preference in Riyadh’s Hospitality Sector
Major Tourist attractions
4.3. Hospitality Supply in Riyadh
Factors Effecting Supply of Hotel rooms in Riyadh
Major Projects in Riyadh
Regions of Major Hospitality Projects
Major Upcoming Projects in Riyadh
4.4. Oversupply Situation in Riyadh Hospitality Market
4.5. Future Market Potential
5. Riyadh Hospitality Market Insight and Performance
6. Key Expected Hospitality Projects in Riyadh
6.1. Major Upcoming Hospitality Projects in Riyadh
6.2. Major Tourist Attractions
7. Key Features and Characteristics of Hotels in Saudi Arabia
8. Average Daily / Monthly / Annual Rental Rates And RevPAR of Hotels in Riyadh
9. Average Daily Occupancy Rates of Hotel in Riyadh
10. Riyadh Hospitality Market Outlook, Opportunities and Future Development Trends
11. Does the Landscape of Hospitality in Saudi Arabia is Forecasted to be Positive and
Encouraging to Invest in this Sector?
11.1. Investment Potential of Saudi Arabia
11.2. Expected ROI’s for Hotels
12. What Gaps Exist in Riyadh Hospitality Market?
13. Recommendations Regarding Success Factors of Developing Hotels
14. Recommended Branded Operators for Hospitality Sector in Riyadh
15. Recommendation for Construction of 3 Star Hotels in Riyadh
15.1. Facilities to be Adopted in a 3 Star Hotel - 10,000 Sqm and 3 Floors
15.2. Design based Recommendations for a 3 Star Hotel – 10,000 Sqm and 3 Floors
15.3. Room Related Recommendations in a 3 Star Hotel – 10,000 Sqm and 3 Floors
16. Competitive Analysis of Case Studies within Riyadh Hospitality Market
16.1. Cross Comparison within Major Hotels in Riyadh
17. Case Studies of Major Hotels in Riyadh
17.1. Hyatt Group (Hyatt Palace)
17.2. Double Tree –By Hilton
17.3. Mira Trio Hotel
17.4. Carawan Al Fahad Hotel
17.5. Al Mashreq Boutique Hotel
17.6. Business Inn Tahlia Hotel
17.7. Hotel Novotel (Riyadh)
17.8. Ibis Riyadh (Olaya Street)
17.9. Holiday Inn (Olaya Riyadh)
Disclaimer
Contact Us
Why Buy From Us?
What makes us stand out is that our consultants follows Robust, Refine and Result (RRR) methodology. i.e. Robust for clear definitions, approaches and sanity checking, Refine for differentiating respondents facts and opinions and Result for presenting data with story
We have set a benchmark in the industry by offering our clients with syndicated and customized market research reports featuring coverage of entire market as well as meticulous research and analyst insights.
While we don't replace traditional research, we flip the method upside down. Our dual approach of Top Bottom & Bottom Top ensures quality deliverable by not just verifying company fundamentals but also looking at the sector and macroeconomic factors.
With one step in the future, our research team constantly tries to show you the bigger picture. We help with some of the tough questions you may encounter along the way: How is the industry positioned? Best marketing channel? KPI's of competitors? By aligning every element, we help maximize success.
Our report gives you instant access to the answers and sources that other companies might choose to hide. We elaborate each steps of research methodology we have used and showcase you the sample size to earn your trust.
If you need any support, we are here! We pride ourselves on universe strength, data quality, and quick, friendly, and professional service.