Saudi’s projected increase in room supply over the next three years is the highest in the world
Figures recently released by STR have underlined the confidence in the Middle East’s hospitality sector. According to the data and analytics provider, Saudi Arabia shows 73,057 rooms across all three phases of the hotel pipeline, and its projected 67.1% increase in room supply over the next three years places it ahead of every other country in terms of pipeline growth.
As of 11 March 2021, 16,965 of the total rooms in the pipeline were scheduled to be completed over the course of this year. The 67.1% increase is subject to the completion of all projects in construction, final planning and planning.
Commenting on the findings, Philip Wooller, STR’s Area Director for the Middle East and Africa said: “Saudi Arabia’s growth aspirations, along with the strength of other Middle East hospitality markets such as Qatar and the United Arab Emirates, is further validation that the region continues to emerge as a global tourist destination. Such growth is a testament to the strength and prospectus of the nation’s strong cultural and economic resources.”
While Makkah (28,052 rooms) does account for a significant portion of Saudi Arabia’s pipeline activity, several other submarkets across the country are expected to increase hotel supply by 50% or more – namely, Riyadh, with 13,165 rooms in the pipeline representing a 75% growth, and Jeddah, with 97% growth and 11,198 rooms pending.