Branded hotel keys in KSA set to reach 69,300 by the end of 2022 representing a 15% YOY increase
Professional services and investment management company Colliers has revealed key market insights for Saudi Arabia ahead of the Future Hospitality Summit (FHS) taking place in Riyadh on 24 and 25 May 2022.
Co-organised by The Bench, MEED and Saudi-based SEMARK under the theme ‘Reimagined Horizons’, FHS Saudi Arabia will bring together government leaders, hotel investors, owners, developers and operators to discuss the future of hotel development, aviation, sustainability, restaurant investment and human capital.
Saudi’s hospitality sector is well on its way to recovery. Riyadh’s forecasted hotel occupancy for 2022 is 65% while Jeddah’s is 54%, representing a 12% and 7% increase respectively.
On the hotel supply side, the kingdom saw a 4% increase in the number of branded hotel keys with a total of 60,400 at the end of 2021.
Roughly 8,900 keys are expected to enter the KSA market in 2022
In 2022, the total number of branded hotel keys is set to reach 69,300 keys, representing a 15% increase compared to the same period last year, outperforming both the UAE with a projected 3% increase and Egypt at 8% growth.
In addition to the sector’s strong performance and outlook for 2022, there have been numerous announcements for new hospitality projects in KSA that will drive further growth and development in Saudi Arabia, including Diriyah Square, the AlUla masterplan, the Amaala development project and the Asser Tourism Masterplan.
AlUla, Saudi Arabia
Colliers MENA executive director and head of Hotels Christopher Lund, will be moderating a session on the topic of tourism growth at FHS Saudi Arabia titled ‘How Tourism Development Fund (TDF) is driving the tourism sector in KSA’ covering elements from partnerships and new concepts to finance.
Lund commented: “We are seeing that developers in Saudi are putting a great deal of importance on finding the right partner and operator for their hotel projects, aiming to have the newest and strongest concepts and best performing properties in the market.”
Conference organiser The Bench chairman Jonathan Worsley added: “We’re thrilled to be back in the Kingdom this month following the success of the inaugural Future Hospitality Summit in October 2020. The interest we’re witnessing in this year’s event is exceptional, which is testimony to the great vision and ambition for tourism in the Kingdom.
“Saudi Vision 2030 is setting the stage for an incredibly promising future of the sector, and with the multitude of investment opportunities arising in Saudi Arabia, we look to provide a unique and vital opportunity for the hospitality investment community to come together and gain crucial insights from key dignitaries and industry leaders involved in the Kingdom’s hospitality market.”
About FHS 2022
Taking place on the 24 and 25 May 2022, the first Future Hospitality Summit (FHS) of 2022 will be held in the Riyadh Airport Marriott Hotel in the Saudi Arabian capital. The event will serve as a platform for high-level investment communities from diverse, opportunity-packed markets to come together and discuss the future of hospitality in Saudi Arabia, a tourism growth market. The two-day event in Saudi Arabia will be followed by FHS Middle East, focusing on the wider region and taking place in Madinat Jumeirah in Dubai, UAE, from 19 to 21 September 2022.
For more information, visit www.futurehospitalitysummit.com