GCC hotels plan $1.65bn interior spend
Riyadh, November 27, 2012
The developers of upcoming hotel projects in the GCC are set to spend $1.65 billion on fit-out and interior designs - about 22.5 per cent of total project costs of $7.33 billion - with Saudi Arabia and the UAE topping the list, according to a report.
Interestingly, Saudi Arabia’s interiors and fit-out sector grew twice as quickly as the UAE's market increasing by 125 per cent to hit $3.5 billion in the current year, according to the Ventures Middle East 2012 report on the trends in the GCC interior contracting and fit-out market.
For the Kingdom’s hospitality sector, this means that hotels are likely to spend heavily on renovation and refurbishment as they look to regain lost occupancies and counter the competition from the rising supply of new hotels with upgrades to existing ones proving to be a growing opportunity for the interiors as well as the hotel electronics market, it added.
The unparalleled growth witnessed in the hospitality sector within Saudi over the last few years has created a huge increase in demand for new hotels and refurbishment of the existing ones, remarked Tim Wilson, the event manager, dmg::events, the organisers of The Hotel Show Saudi Arabia held at the Jeddah Center for Forums and Events recently.
The positive upturn in the Kingdom’s hospitality sector triggered by an influx of domestic and religious travel, which is approximately 2.8 million more than in 2010, offers unmatched growth potential for the development of interiors, hotel refurbishment, and the fit-outs sector, he noted.
"Many of the major hotel chains in Jeddah, Makkah and Madinah have embarked on a strategy of penetration, expansion and renovation of hospitality projects in the face of increased competition and demand for high-quality services, modern interiors and electronics by the international traveler," stated Wilson.
Riyadh-based commercial property development company Al Khozama has announced plans to invest more than $140 million as part of its hospitality operations expansion.
The company plans to build new hotels and refurbish some of its existing properties in the Saudi capital including the Al Khozama Centre in Riyadh which will be converted to a four-star deluxe property, replacing the existing hotel.
Commenting on the show, Wilson said, "The phenomenal growth in the Saudi hospitality market has created significant opportunities for a number of technology and fit out sectors. The presence of companies like LG and Nowy Styl at The Hotel Show Saudi Arabia is a testament to the growth potential that exist in the Saudi Market."
"We feel that this is the best time to bring a broad range of local and international companies from these sectors to The Hotel Show Saudi Arabia," he added.
Commenting on LG Electronics’ participation, Bret Moon, the regional marketing manager said, “As a company, LG Electronics has always believed in offering eco-sustainable hospitality solutions and technologies designed to optimise the guest experience."
"We are among the leaders in the regional electronics space and extremely bullish about the growth prospects that the Saudi hospitality sector offers," he added.
More than 100 companies from 24 countries participated at the inaugural show in Saudi. The key segments of the industry value chain represented at the expo included Interiors & Design, Operating Equipment & Supplies, Technology and Horeca. -TradeArabia News Service