MID-MAR­KET HOLD KEYS TO THE KING­DOM SAYS TIME BOSS

HotelNews Middle East - - Re­gional News -

Mid-mar­ket ho­tels are key to the suc­cess of the ho­tel in­dus­try in Saudi Ara­bia, ac­cord­ing to the CEO of Time Ho­tels.

Mo­hamed Awadalla was speak­ing at the in­au­gu­ral Saudi Ara­bia Ho­tel In­vest­ment Con­fer­ence (SHIC), which is tak­ing place at the Mar­riott Con­ven­tion Cen­tre, Riyadh Mar­riott Ho­tel.

Awadalla said: “As re­ceipts from Saudi oil rev­enues have de­clined, some govern­ment de­part­ments and pri­vate com­pa­nies have re­duced their travel ex­penses which in turn has led to an in­crease in cor­po­rate de­mand for more mid-mar­ket ho­tels, an area of the mar­ket that has tra­di­tion­ally been re­served for more lux­ury prop­er­ties.

“Our cur­rent pipe­line of ho­tels and res­i­dences aims to of­fer a high-qual­ity ho­tel or ser­viced apart­ment for a mar­ket seg­ment that is cur­rently un­der-rep­re­sented in the re­gion.”

Ac­cord­ing to new re­search, pub­lished ahead of SHIC by Col­liers In­ter­na­tional, re­cent re­forms in Saudi Ara­bia – and wide­spread in­vest­ment in the King­dom’s bur­geon­ing tourism in­dus­try – will drive growth in the mid-mar­ket ho­tel sec­tor at a com­pound an­nual growth rate (CAGR) of 16% be­tween 2017 and 2021.

The sup­ply for mid-mar­ket ho­tels is ex­pected to in­crease over the next five years with Makkah, Riyadh and Jeddah to see the ma­jor­ity of ho­tel open­ings – ac­count­ing for 54%, 16% and 12% of the forth­com­ing mid­mar­ket sup­ply in the King­dom.

In April 2016 Time Ho­tels signed a deal with Saudi-based Al Fahd In­vest­ments. As part of this agree­ment, Uae-head­quar­tered Time Ho­tels will ex­pand its pres­ence in the King­dom with the man­age­ment of sev­eral new mid-mar­ket ho­tels.

The prop­er­ties un­der Time Ho­tels and Re­sorts are set to open be­tween 2018 - 2019 in Jeddah, Riyadh and other cities. While the Time Ex­press Ho­tel in Riyadh, set to open around 2019, will be the de­but for the Ex­press brand in the King­dom.

“Time Ho­tels has been very strate­gic with its open­ings, both in Saudi Ara­bia and the wider Mid­dle East re­gion, by iden­ti­fy­ing and as­sess­ing the de­mand within the mar­ket and im­ple­ment­ing the most suit­able brand from the Time port­fo­lio to best match con­sumer de­mand. We’re ex­cited by the prospects 2018 brings and look for­ward to adding fur­ther to our port­fo­lio,” Awadalla said.

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