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TIME Hotels is set to expand its Saudi Arabia presence with several new mid-market hotels TIME Hotels is set to expand its Saudi Arabia presence with several new mid-market hotels

Saudi Arabia set for Mid-Market Hotel Growth

Mohamed Awadalla, CEO, TIME Hotels, outlined the importance of mid-market hotels to Saudi Arabia’s tourism industry during the inaugural Saudi Arabia Hotel Investment Conference (SHIC), which took place on February 26.

According to new research, published prior to SHIC by Colliers International, recent reforms and widespread investment into the Kingdom’s burgeoning tourism industry will drive mid-market hotel sector growth at a 16 percent compound annual growth rate between 2017 and 2021.

The supply for mid-market hotels is expected to increase over the next five years with Mecca, Riyadh and Jeddah to see the majority of hotel openings – accounting for 54 percent, 16 percent and 12 percent of the country’s forthcoming midmarket supply.

“As receipts from Saudi oil revenues have declined, some government departments and private companies have reduced their travel expenses, which in turn has led to an increase in corporate demand for more mid-market hotels, an area of the market that has traditionally been reserved for more luxury properties,” commented Awadalla.