Saudi Arabia’s Hotel Industry Set to Double in the Next Decade
In a bold statement to Arab News, Elie Maalouf, CEO of IHG Hotels and Resorts, revealed that Saudi Arabia is on the brink of doubling its hotel room capacity in the next 10 years to keep up with the growing influx of religious tourists.
Maalouf emphasized the urgency for more accommodations in the Kingdom, especially with its emergence as a global tourism hotspot. He highlighted the unique segment of religious travel, which is booming in Saudi Arabia, underscoring the need for a significant increase in hotel rooms to meet the escalating demand.
With plans to introduce two new luxury hotels under the Regent and Intercontinental brands in Riyadh’s King Abdullah Financial District by 2027, Maalouf expressed excitement for these iconic properties that are set to redefine hospitality in the region.
Expanding Luxury and Middle-Class Options Across Saudi Arabia
IHG’s Regent Riyadh KAFD will be the first Regent property in the capital city, offering a luxurious experience with 250 keys, signature restaurants, and top-notch amenities. Meanwhile, InterContinental Riyadh KAFD will cater to a wider audience with 400 keys, multiple dining options, and extensive facilities for business and leisure travelers.
Maalouf emphasized IHG’s commitment to catering to both upper-luxury and middle-class guests in Saudi Arabia, with a focus on giga-projects and megacities like NEOM, Diriyah, Red Sea, and AlUla. The company’s partnership for 13 new Holiday Inn Express hotels further demonstrates their dedication to providing a stay for every type of traveler.
Driving Saudization and Economic Growth
As IHG ramps up its operations in the Kingdom, Maalouf highlighted the importance of increasing Saudization in their workforce. With plans to add 6,000 Saudi nationals to their team by 2030, IHG aims to contribute to job growth and economic development in Saudi Arabia.
Maalouf expressed optimism about Saudi Arabia’s potential to become a top tourist destination globally, citing factors like economic diversification, GDP growth, and a young population as key drivers for the tourism sector’s expansion.
Vision 2030: A Game-Changer for Saudi Tourism
Looking ahead, Maalouf predicted a steady rise in tourist numbers in Saudi Arabia, especially with the implementation of Vision 2030 and future development plans. He emphasized the importance of aligning with the Kingdom’s vision to unlock the full potential of its tourism industry.
In a changing landscape of hospitality, Maalouf highlighted the shift in visitor preferences towards spending quality time in public spaces, dining areas, and wellness centers rather than just in their rooms. IHG’s focus on wellness programs and quality amenities reflects their commitment to meeting the evolving needs of modern travelers.