The organisers of The Arabian Hotel Investment Conference have held a briefing event in Jeddah for industry leaders and professionals to discuss the positive performance that the hospitality sector has achieved in Saudi Arabia in 2014.
Also on the agenda was the outlook for 2015 and beyond, with a particular focus on Jeddah and the Holy Cities.
The event was hosted by Makarim Annakheel Hotel & Resort in Jeddah, and the gathering was addressed by industry leaders. Presentations came from Edmund O’Sullivan, chairman of MEED Events; Munir Ahmed, director hospitality, Naseel Holding Company; Chiheb Ben Mahmoud, director at Alesayi Hospitality Company, among others.
Commencing with a market overview from STR Global Middle East & Africa for year-end 2014 results, the first session of the Saudi Briefing revealed that the region had reported positive performance results during December 2014, when reported in US dollars.
The Middle East and Africa reported a 3.9 per cent increase in occupancy to 61.9 per cent, a 3.2 per cent increase in average daily rate to US$183.35 and a 7.3 per cent increase in revenue per available room to US$113.53.
The overview presentation was given to the attendees by Philip Wooller, area director for Middle East & Africa at STR Global, who said: “As the whole Middle East witnessed positive results in 2014, Jeddah specifically has had an overall successful end to 2014 and continues to improve its reputation as a destination for business and leisure.
“Demand growth was able to climb 2.9 per cent for year-end 2014, with the supply increase of 1.9 per cent.
“This resulted in positive occupancy growth achieving a level of 74.3 per cent occupancy for the year.”
Colliers International, who recently launched MENA Hotel Market Forecast, also emphasised in their report that the MENA region is offering significant opportunities to the global investors.
The report also showed that Jeddah is currently witnessing a consistent demand and delays in new supply to stabilize the market.
Commenting on the forecasts for the region, Filippo Sona, director, head of hotels at Colliers International, who also attended the Jeddah Briefing, said: “Investors and industry stakeholders are continually looking to understand the powerful factors shaping the MENA hospitality market.
“The forecast will provide industry professionals with a basis for budgeting and pricing strategies as the sector undergoes significant development, including the delivery of properties scheduled to come online in the mid to long-term.
“Colliers International has conducted valuations of 32-35,000 keys and asset management of 7800 keys in the region; this has provided us with a unique insight into what lies ahead for this dynamic sector.”
The Jeddah Briefing was held by the organisers of AHIC 2015 Conference, which will take place next year from May 5th-7th 2015 at Madinat Jumeirah in Dubai.