DUBAI: Saudi Arabia’s focus on tourism as one avenue to diversify the Kingdom away from oil dependence is receiving a boost with a slew of hotel projects now under construction.
Industry monitor STR, in its latest update on the Middle East and Africa hotel sector, said that projects now being undertaken in Makkah and Riyadh would add almost 30,000 rooms to the current supply.
In Riyadh, a total 6,290 hotel rooms are now being built to complement the 13,104 rooms in inventory while in Makkah about 23,307 are now in construction, which will add to the 32,377 rooms already in the market.
In other Gulf areas, current hotel projects in Dubai would add 36,394 rooms to the 97,736 rooms in supply while in Abu Dhabi about 4,064 rooms are now being constructed to boost the 26,678 rooms available to clients.
STR also noted that 333 properties are under construction in the wider Middle East region, comprising 105,037 hotel rooms while 146 projects are being implemented in Africa, equivalent to 26,030 rooms.
Meanwhile, STR said that the revenue per available room (RevPAR) and average daily rate (ADR) of Jeddah hotels slightly dipped in January despite an increase in demand during the month.
The ADR was 2.4 percent lower to SR732.33 while RevPAR slipped 2.1 percent to 370.33 on an industry occupancy rate of 50.6%. RevPAR, a key hotel industry performance indicator, is obtained by multiplying a hotel’s ADR by its occupancy rate.
“The month’s high demand growth figure was boosted by the school holiday during the middle of January,” STR said in its report.
Hotel room availability in Jeddah was up 11.7 percent in January, while demand grew at a faster 12.1 percent rate.
Makkah, Riyadh projects to add almost 30,000 rooms in Saudi hotel market
Makkah, Riyadh projects to add almost 30,000 rooms in Saudi hotel market
Closing Bell: Saudi main index closes in red at 10,414
RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower on Wednesday, shedding 38.85 points, or 0.37 percent, to finish at 10,414.06.
Total trading turnover on the benchmark index reached SR3.46 billion ($920 million), with 123 stocks advancing and 134 declining.
The Kingdom’s parallel market Nomu also shed 41.61 points, or 0.18 percent, to close at 23,428.67.
The MSCI Tadawul Index edged down 0.45 percent to 1,368.36.
Arabian Drilling Co. was the best-performing stock on the main market, with its share price rising 6.8 percent to SR102.90.
Naqi Water Co. gained 4.30 percent to SR58.25, while Saudi Ground Services Co. advanced 3.78 percent to SR38.42.
Tihama Advertising, Public Relations and Marketing Co. saw its share price fall 4.95 percent to SR16.31.
AlAhli REIT Fund 1 also declined 3.53 percent to SR6.29.
On the announcements front, United Mining Industries Co., listed on the parallel market, said it has begun commercial production of gypsum board at its plant in Yanbu.
In a Tadawul statement, the company said the financial impact of the project’s commercial production will be reflected in the first quarter of 2026.
United Mining Industries Co.’s share price was unchanged, closing at SR42.54.
Dkhoun National Trading Co. said its shareholders approved the board’s recommendation to distribute interim dividends on a semi-annual or quarterly basis for 2025.
According to a Tadawul statement, shareholders also approved transferring the balance of the company’s statutory reserve, valued at SR2.43 million, to retained earnings.
Dkhoun National Trading Co.’s shares saw no trades and closed at SR65.
