(MENAFN) The hospitality industry in Saudi Arabia is experiencing a boom, with the Kingdom leading the Middle East and Africa's hotel building activity. According to the latest data from hotel industry monitoring firm STR, as of March, Saudi Arabia had 42,033 hotel rooms under construction, accounting for 35.1 percent of the 119,505 being built in the region. This places Saudi Arabia only after China and the US in the global hotel construction market. Under Vision 2030, the Kingdom's hotel sector is expected to grow further, with a goal of having 310,000 hotel rooms by 2030 and an investment size of USD110 billion, according to data released by Knight Frank.

As a result of this growth, Saudi Arabia's hospitality industry is witnessing steady growth in key performance indicators. For instance, Riyadh's hotel occupancy rate hit 75.5 percent in February, the highest figure since 2008, according to data released by STR in March. Compared to 2019, the occupancy in February jumped 23.4 percent, the average daily rate rose 34 percent to SR801.46 (USD213.46), and the revenue per available room increased 65.3 percent to SR605.06. Additionally, Saudi Arabia's hotel segment is projected to generate USD2.51 billion in revenue this year and is expected to reach USD3.02 billion by 2027, according to Statista.

Guy Hutchinson, president and CEO of hospitality group Rotana, stated that "the hospitality industry is undoubtedly poised for accelerated growth, and the region is currently leading the travel and hospitality sector globally." The boom in the hospitality industry can be attributed to several factors, including a growing emphasis on tourism, major infrastructure projects, and the government's push to diversify the economy away from oil. Overall, the data suggests that the hospitality industry in Saudi Arabia is set for continued growth in the years to come.

MENAFN07052023000045014228ID1106191799