Time: February 18, 2019
Saudi Arabia’s recent focus on developing its entertainment sector is driving growth in Jeddah’s hospitality sector, according to new data released by real estate consultancy firm CBRE.
CBRE’s 2018 Jeddah Market Snapshot revealed that the Red Sea city saw revenue per available room (RevPAR) and average daily rate (ADR) up 8 percent and 10 percent respectively year-on-year.
It added that an additional 6,400 keys are expected to be delivered to market by 2022, in addition to an existing supply of 13,760 keys.
CBRE predicts ample opportunity for Jeddah’s hospitality sector, owing to the growing number of pilgrims and the anticipated flow of tourists as key entertainment projects are delivered.
Furthermore, the introduction of the new Saudi tourism visa will further boost Jeddah’s hospitality sector, CBRE added.
It said that it expects to see further activity in the northern areas of the city, towards Obhour, as Jeddah continues to expand beyond its role as an historical trading port.
Simon Townsend, head of Strategic Advisory at CBRE MENAT and general manager, CBRE Saudi Arabia, said: “Saudi Arabia’s recent focus on developing its entertainment sector is already stimulating important growth across a range of sectors including hospitality.
“Large-scale infrastructure including projects such as the Jeddah Opera, the Obhur Bridge and the tram on the Corniche, will further add to the city’s growing reputation as an important cultural, leisure and business hub in the kingdom.
“This market, as witnessed by the entire region, has experienced downward pressures over the last year. However, promising opportunities are consistently arising across all asset classes, and continued investment by the government will only serve to further grow confidence in Saudi Arabia’s real estate sector.”