efforts to establish a sustainable business environment in which investors and hoteliers can thrive.
As Salah Al Bakheet Al Talib, vice president, SCTH, revealed, negotiations are underway with a number of international heavyweights after achieving high satisfaction and generating strong interest with the Kingdom’s new regulations of hotel classification.
As part of the enhancement of the country’s tourism product, SCTH is also keen on further diversifying the hotel sphere by encouraging the development of midscale projects.
As Al Talib noted, the market is currently saturated with five-star hotels in some major cities, creating a dire need for four- and three-star establishments.
The entry of trusted brands in these segments is set to expand the offering, thus, meeting the requirements of a broader pool of potential visitors, and ultimately raising the Kingdom’s competitiveness both regionally as well as internationally.
As Al Talib highlighted, since overtaking the sector, SCTH has exerted efforts to stimulate hotel investment and attract international companies through a radical development of licensing regulation which also included a shift into stars system as well as measures to facilitate licensing procedures.
“In its efforts to support the funding of hotel facilities, SCTH has recently launched the hotel project funding programme […],” added Al Talib, ensuring that the hospitality industry occupies a very high rank among the state’s priorities.
As a result of the Kingdom’s flourishing tourism sector and an even more welcoming environment, hospitality giants are lining up to leverage the available opportunities with Marriott International alone planning 21 new addresses with some 4,200 rooms by 2025.
Likewise, AccorHotels, which has just recently unveiled its latest venture, Pullman ZamZam Madinah, outlined ambitious plans for the country.
Already boasting a portfolio of 15 properties with over 4,500 units in operation, the hotelier currently has 35 further projects under development across the Kingdom, representing some 9,000 keys.
“The consistently high demand in the Saudi market reveals a shortage of quality accommodation and a pressing need to develop the Kingdom’s hotel infrastructure across all segments, from luxury to economy,” explained Olivier Granet, chief operating officer, AccorHotels Middle East, saying that the augmentation of the sector is in line with the Kingdom’s commitment to cater to the evolving needs of its visitors.
Hilton Worldwide is yet another titan that has placed Saudi Arabia at the forefront of its growth plans. Having just launched Conrad Makkah, the company is already working towards the next opening.
“With another 28 Hilton Worldwide properties in development, we are extremely proud to offer incredibly variety and choice for travellers to the region,” stated Rudi Jagersbacher, area president, Middle East and Africa, Hilton Worldwide.
The Kingdom also remains one of the strongest Middle Eastern growth markets for Starwood Hotels & Resorts Worldwide, confirmed Michael Wale, president, Europe, Africa and Middle East, Starwood Hotels & Resorts Worldwide.
In fact, with 10 operational properties and 13 projects in the pipeline – including the recently signed Westin and Element hotels in Riyadh – the country is the company’s second-largest market in the region, demonstrating its growing significance on the global tourism map.
European luxury expert, Kempinski is also adding a new address to its Saudi portfolio with its second property in the country set to become fully operational by September.
As Steven Pieters, executive assistant manager, Kempinski Al Othman Hotel, Al Khobar, explained, with a bouquet of facilities for both corporate as well as leisure travellers and innovative culinary offerings, besides the area’s ever-important business segment, the luxury city resort is expected to particularly appeal to local families from across the Kingdom who frequently visit the Eastern Province for shorter or longer vacations.
“We believe that the time is right [to bring another project to the market], with the diversification of the economy, which we are witnessing right now,”
