Colliers International has published its latest quarterly review on the MENA hotel market
Jeddah was Saudi Arabia’s top-performing city in terms of hospitality last quarter. That is according to Colliers International’s latest quarterly review on the MENA hotel market.
Colliers found that the average daily rate (ADR) figures increased by 19% in Jeddah YOY, the only city to see an increase in Q1 2021. By comparison, ADR dropped 12% in Riyadh, 4% in Dammam/Khobar, 7% in Makkah and 13% in Madinah.
Hotel occupancies struggled to hit pre-pandemic figures across KSA, with Colliers saying figures ranged between 20% and 50%. Again Jeddah was the best off, reporting a 1% occupancy decrease YOY. Riyadh meanwhile saw a 20% drop and Dammam/Khobar saw a 5% drop.
The Kingdom’s holy cities saw the sharpest declines as Covid-19 regulations limit the number of religious visitors. Occupancies fell 64% in Makkah and 48% in Madinah.
Colliers said in its report: “The increase in domestic demand within the Kingdom has contributed to the recovery of hospitality demand post-pandemic. It’s expected that once International travel resumes in May, there will be an increase in international demand.”
Supply continued to increase in KSA, added Colliers. The total branded keys in the Kingdom reached 58,600 by the end of Q1 2021, representing an increase of 9.4% compared to the same period last year. The Jeddah and Makkah markets recorded the highest increase in supply in Q1 2021, accounting for approximately 600 additional keys. Supply in the Saudi market is expected to increase at a CAGR of 11% between 2021 and 2023, accounting for an additional 15,000 keys in the market.