The third quarter of 2023 has been dynamic for the hospitality market in KSA.
The latest KSA Real Estate Market Overview by JLL reported key developments in Riyadh and Jeddah’s hotel markets that are shaping a positive trajectory for the kingdom’s burgeoning hospitality sector.
Riyadh’s Fairmont Ramla serviced apartments were the first project to be completed this year. With around 250 keys, it increased the total supply in the capital to approximately 21,000 keys in the capital. In contrast, Jeddah did not finalize any significant hotel projects during the same period. Thus, the total supply has remained at approximately 16,000 keys. Looking ahead, Riyadh plans to add nearly 1,000 keys. Notably, Jeddah plans to develop 470 keys over the remaining months of this year.
Saudi Arabia’s year-round events and openness to foreign visitors are driving robust growth in the hospitality sector. Riyadh Season, commencing in late October and extending until late December, will enhance hotel performance in the capital, especially after the traditionally slower summer season. During Q3, the hotel market displayed remarkable growth. The city-wide occupancy in Riyadh reached an impressive 60 percent for the year to August 2023. ADR also witnessed a substantial increase of 12 percent, reaching USD 188 and surpassing figures from the same period in the previous year. RevPAR experienced commendable growth, rising by 17 percent year-on-year to reach USD 113.
Meanwhile, Jeddah’s hospitality market maintained its robust performance, achieving a city-wide occupancy rate of 65 percent for the year to August 2023. During this period, ADR increased by 3 percent year-on-year, reaching USD 220. Furthermore, RevPAR recorded significant growth, up by 19 percent annually and amounting to USD 143.
This strong performance underscores the positive trajectory and robust investor sentiment in the kingdom’s hotel market. It is also fueled by a strategic event planning calendar and increasing demand from both domestic and international travelers.
For the full report, click here: http://bit.ly/3QSsxZd
jll.com
