Travel Reservations - OrangeSmile Tours
Best destinations around the world - Travel Guide

Find the right hotel

Hotel Business News and Analytics
Important! This article is written by orangesmile.com editors and is protected by copyright law. The article can only be re-used with a direct link to www.orangesmile.com

Hotel Market of Saudi Arabia is Ready for New Openings

News Colliers International has issued a new and very interesting report about the hotel market of one of the most popular destinations in the Middle East - Saudi Arabia. According to the report, the country’s hotel market is so hungry for new openings that it can easily absorb as many as 34,822 additional economy hotel rooms within next 5 years. That’s a really huge number given that these days hotels in many countries are scared of the possibility of new competitors in the overcrowded market.

As Colliers mentions in its report, currently, only 19% of economy hotels in Saudi Arabia are branded. There’s a huge market gap in this segment and the appearance of new players in the market, such as Best Western and Tulip Inn, is unlikely to change the situation.

These days, the majority of hotels operated by internationally acknowledged companies are located in Riyadh and Jeddah. At the same time such cities of Saudi Arabia as Abha, Al Ahsa, Hail, Jazan, Yanbu, Burayadah, and Jubail have absolutely no or almost no economy hotels run by famous international brands.

Opening hotels in these regions can be very profitable, mentions Colliers. The land is relatively cheap in these cities and costs from 6,000 riyals (US$1,587) to 20,000 riyals (US$5,291) for one square meter. The expected return from such projects ranges between 18% and 21%. With such a level of return Saudi Arabia is likely to attract new investors as well as some big names.


Previous article / Back to news index

Stay in touch with the latest news of a worldwide hotel industry. All up-to-date analytics, reports, and news about hotel business trends on OrangeSmile.com.

Our travel services
 Car Rental
Car Hire Worldwide
 News in languages
 Top 10 destinations
216 hotels
91 hotels
69 hotels
150 hotels
65 hotels
724 hotels
48 hotels
47 hotels
60 hotels
41 hotels