The study states that most hotel investors remain hopeful for a relatively quick recovery period. 46% of respondents of the quarterly survey expect the recovery period to begin in Q4 of 2020.
Colliers International Quarterly Survey revealed that 79% of hotel owners decided to partially or fully close their hotels due to low occupancy rates. Though most hotel investors remain hopeful for a relatively quick recovery period. 46% of respondents expect the recovery period to begin in the 4th Quarter of 2020.
New Beginnings
A total of 7,900 quality branded hospitality keys have entered the UAE market between Q1 2019 and Q1 2020. 95% of this new supply opened in Dubai. These branded hotel openings include Crowne Plaza Dubai Marina, Radisson Red Silicon Oasis and ME Dubai Hotel.
The supply in the market is expected to increase at a Combined Average Gross Rate of 12% between 2020 and 2022. This will add an additional 35,200 rooms in the market.
Increase of Tourism Interest in KSA
Interest in the Kingdom of Saudi Arabia as a tourist destination picked up since the launch of the new tourism visa in September of last year. The Saudi Commission for Tourism and National Heritage (SCTH), reported that visitors from China, UK, Malaysia, United States and Canada topped the list of new arrivals to the Kingdom after the launch of the new tourist visa.
The COVID-19 pandemic has had a vital impact on the hotel industry in the Kingdom of Saudi Arabia. The Saudi hotel market underwent a drop in occupancy with Makkah being the hardest hit market due to a temporary pause on religious activities, which attract millions of people to the city every year.
KSA Market Outlook
The branded hospitality market in KSA is anticipated to reach 62,000 keys by the end of 2020, with Makkah and Riyadh being the largest donors to the supply. The supply is presumed to grow at a CAGR of 16% from 2020 to 2022.
