The Saudi Arabian capital of Riyadh is set to see a boom in hotel construction over the coming years. 40 new hotels are set to descend on the city, bolstering Riyadh’s already booming commercial economy which has established it as one of the foremost hubs for business and enterprise in the region.
Riyadh is the capital of and most populous city in Saudi Arabia, with inhabitants numbering more than six million. Situated in the middle of the Arabian Peninsula, Riyadh is set on a large plateau and organised on an American grid system, with a high-rise area forming the King Abdullah Financial District, which feeds a lot of the city’s commercial activities. Saudi Arabia’s capital has become one of the most important business hubs in the Middle East, and attracts lots of business travelers each year, who require state of the art facilities and luxury accommodation that boasts the best in Arab hospitality.
Riyadh project pipeline
Between 2018 and 2021, 40 new projects are set to open their doors to the public. These hotels will bring a total of 8,840 new guest rooms, suites and apartments to the Saudi capital, making sure that the large numbers of business travelers and leisure tourists are catered for. This year will see the largest amount of openings, with 40%, or 16 hotels welcoming guests before the end of the calendar year. 2019 is also set to be a landmark year for hotel construction in the city, with 12 new projects opening their doors, a figure which amounts to 30% of the total 40. In 2020 and 2021 the rate of openings will slow slightly, with six projects slated to be operational in 2020 and a further six set to open in 2021.
Phasing and categorisation
Given the type of traveler who will be setting foot in the business mecca of Riyadh, it is perhaps no surprise that all of these projects will be in the upper tier of the hotel sector. 23 projects will be classed as first class, while the remaining 17 will be classed as luxury hotels. 50% of the final total are under construction at the moment, setting the hotel openings for next year and 2020 on course. The remaining projects are evenly split between the planning and pre-opening stages, meaning that it is likely that the 2018 openings will hit their opening deadlines.
Let’s take a look at a few projects currently underway in Ryjadh: