UAE Business: 32,000 hotel rooms under development in Saudi Arabia – Gulf Digital News

UAE Business: 32,000 hotel rooms under development in Saudi Arabia – Gulf Digital News

A total of 32,621 hotel rooms are currently under construction in Saudi Arabia, as the kingdom prepares to meet pent-up demand from pilgrims returning to its holy cities, according to the latest research from STR, commissioned by Arabian Travel Market (ATM) 2022.

ATM 22 will take place at Dubai World Trade Centre (DWTC) from May 9 to May 12.

The analysts found that Saudi Arabia's revenue per available room (RevPAR) recovery index stands at 52 percent, noting that the absence of millions of Muslim pilgrims has significantly impacted hotel performance in Saudi Arabia. Madinah and Makkah witnessed RevPAR rates of just 33 percent and 24 percent, respectively, in 2021.

Although significantly lower than pre-pandemic levels, KSA’s hotel performance registered year-on-year gains in 2021 and the sector’s recovery is expected to persist throughout the coming year, with pent-up demand driving further improvements as Covid-related restrictions continue to ease, the study said.

Danielle Curtis, Exhibition Director ME - Arabian Travel Market, said: “As was the case for markets the world over, the global pandemic had a major impact on Saudi Arabia’s hospitality sector. Even so, STR’s findings clearly point to an ongoing and sustained recovery, and we are looking forward