Rotana highlights growing hotel stock set to transform Saudi Arabia’s tourism and hospitality sector
Closely aligned with Saudi Arabia’s rapid economic transformation, Rotana, one of the leading hotel management companies in the region with hotels across the Middle East, Africa, Eastern Europe and Turkey, has stepped up its efforts to deepen the company’s footprint in the Kingdom. Shedding light on the company’s impressive development pipeline at the ‘Rotana Hotels 2019 GCC Roadshow’, Guy Hutchinson, Acting CEO, said that Rotana will continue to pursue its aggressive expansion plans in the country.
In line with its ambitious Saudi Vision 2030 roadmap, the country has been increasingly focusing on diversifying its economy with major investments in the infrastructure, real estate and tourism sectors. As a result, the Kingdom has witnessed a tremendous increase in the number of corporate and leisure travellers, which, in turn, has led to a sharp rise in demand for branded accommodation. Keen to capitalize on this opportunity, Rotana has planned a new line-up of four hotels to address the growing supply gap in the market.
Centro Corniche, Al Khobar, and Dana Rayhaan by Rotana, Dammam, are scheduled for opening in the first and second quarters of 2019 respectively, while Salama Arjaan by Rotana, Jeddah, and Centro Medina, Medina, will open their doors to guests in the second quarter of 2020. In the Kingdom, which continues to witness demand across product range – from premium and luxury to midscale and economy accommodation – Rotana’s product mix will cater to the evolving needs of business and leisure travellers alike. The upcoming properties will add a total of 1,018 keys to the company’s strong portfolio.
Guy Hutchinson continued: “With its thriving economy and flourishing religious and domestic tourism, Saudi Arabia has remained as one of the fast-growing hospitality markets in the world. Following its launch of a host of mega projects and futuristic initiatives in line with its goals outlined in the Saudi Vision 2030, the Kingdom has been experiencing increased activity in overnight international corporate and leisure traveller visitation. The ongoing reforms, such as new tourist visas and the opening up of the entertainment sector, have further elevated the country’s destination appeal. With the $500 billion Red Sea coastline project, NEOM mega-city project, Al Qiddiya Entertainment City, Farasan Islands initiative, and the 3,000-square-kilometre luxury destination project, Amaala, becoming a reality, the Kingdom will emerge as a leading hub of business and leisure travel. On the back of these prospects, the country’s hospitality market, which is poised for a 13.5% compound annual growth rate (CAGR) by 2022 , offers new opportunities to hotel operators.”
“Saudi Arabia will continue to be a key focus market for Rotana and we are optimistic that the Kingdom’s hospitality market will expand enormously, driven by the sustained recovery in the global economy and the rapid growth in emerging and developing markets. We remain committed to contributing to the evolution of the country as an economic powerhouse while strengthening our leading position in the sector with our diversified portfolio and strong market presence,” Hutchinson concluded.
A leading growth market for the company, Saudi Arabia is home to six Rotana hotels under operation across three major cities. Al Marwa Rayhaan by Rotana, Makkah, Rosh Rayhaan by Rotana, Centro Olaya and Centro Waha in capital Riyadh, and Centro Shaheen and Centro Salama in Jeddah, with a combined room’s inventory of 1,603 keys.