Riyadh hotels see performance improve in May

Riyadh hotels see performance improve in May

The three key performance metrics were all up from April

According to new data from Smith Travel Research (STR), Riyadh’s hotel industry reported its highest room rates in three months in May 2021.

Preliminary May 2021 figures for the kingdom‘s capital city showed occupancy levels at 43%; average daily rate (ADR) at SAR544.31 ($144.9), and revenue per available room (RevPAR) at SAR232.85 ($62). Each of the key performance metrics were up from April 2021. 

Despite this month-on-month increase, occupancy and RevPAR came in lower than earlier pandemic-affected months, but an easing of travel restrictions and an increase in international flights could provide a further boost to the sector, particularly in business travel. 

Pre-pandemic, high summer temperatures across the GCC traditionally herald low season in the leisure travel market, however, last year, Saudi Tourism Authority unveiled its ‘Saudi Summer’ campaign to encourage residents to explore the Kingdom in lieu of a holiday abroad. The campaign was a success, increasing domestic travel to 50% higher than projected.

The Saudi Minister of Tourism, Ahmed Al-Khateeb, told Bloomberg that the surge in domestic travel ultimately helped save businesses and boost the economy.

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