Friday 4 December 2020

Voivenel (R) with other officials at the ATM stand

HMH targets Saudi Arabia as strategic growth market

DUBAI, April 26, 2016

Hospitality Management Holdings (HMH) is aggressively targeting opportunities in Saudi Arabia as part of its strategy to prioritise expansion in GCC by focusing on markets with high growth potential for the group.

Speaking at the Arabian Travel Market 2016, Laurent A. Voivenel, CEO of HMH said: “Saudi Arabia is a land of opportunity both in terms of domestic, inbound and outbound tourism as well as religious tourism and is a pillar of our expansion strategy that is aimed at capturing maximum market share in the GCC. In terms of development, 36 per cent of the total Coral Hotels & Resorts portfolio, that is our flagship four and five-star brand, is currently located in Saudi Arabia and we are eager to build on our success in the country. Saudi Arabia is also one of the largest source markets for most of our operating hotels."

Laurent added, "In the first quarter of 2017, we have a superb opening coming up with Coral Al Madina Hotel in Saudi Arabia that will tremendously boost our product offering in the country. The luxurious five-star hotel has been conceived to be a prestigious address for discerning travellers to Madinah and is superbly located just across the road overlooking the Holy Mosque. The hotel is being developed to be the first ‘Smart’ hotel in Madinah offering the most advanced technology including high-tech smart rooms. Featuring 400 plus rooms and suites, Coral Al Madina Hotel is spread over 10 floors and five basements. Included in its extensive facilities are three superb restaurants, lobby lounge, luggage room, shopping arcade, fully-equipped gym and spa, two state-of-the-art meeting rooms, business centre and large parking space as well as helicopter landing site. All rooms are designed with the guests’ comfort in mind and offer the ultimate in convenience and luxury, coupled with incomparable views of the Holy Mosque. Each room is thoughtfully equipped for pilgrims and families who desire to enjoy the serenity of the Holy City".

According to a recent industry report Saudi Arabia is witnessing a significant shift towards development of mid-range hotels with six out of the top 10 brands focusing on mid-market. Like the rest of the region, the mid-market hospitality segment is currently under-supplied in Saudi Arabia, pushing the demand for quality serviced apartments as well as three and four-star properties.

Elaborating on the trend, Voivenel said: “The scale of opportunity in the region for mid-market/budget hotels is unprecedented and, therefore, mid-market travel has been rightly identified as the official show theme for ATM this year. Expanding airline network especially low-cost carriers, increased airport capacity, growing middle class, emerging source markets, continued development of leisure and commercial areas as well as massive investment in tourism infrastructure in cities like Riyadh, Jeddah, Makkah and Madinah, is fuelling the demand for affordable accommodation. At HMH we are well-placed to serve this segment with three brands out of five targeting middle class."

Saudi Arabia is the second largest hub for hotel construction in the Middle East and Africa, behind only the UAE. According to figures available from World Travel & Tourism Council, the direct contribution of Travel & Tourism to GDP was SAR68.4 billion ($18.2 billion) in 2014 (2.4 per cent of total GDP) and is forecast to rise by 4.3 per cent per annum until 2025, to SAR110.8 billion ($29.5 billion), which is 2.8 per cent of total GDP. Likewise Travel & Tourism investment will rise by 4.3 per cent per annum over the next 10 years to SAR149.1 billion ($39.7 billion) in 2025, which is 12.7 per cent of the total GDP. - TradeArabia News Service

Tags: Dubai | Saudi | ATM | target | Arabia | HMH |

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