Saudi Arabia's hospitality sector has produced positive headline figures across the three key performance indicators (KPIs) year-on-year in the year to date to June 2023 with a 25.2% growth in ADRs, according to top real estate insdustry expert CBRE. 

 

On a country level, the kingdom saw an 8.4 percentage points rise in average occupancy and 25.2% growth in ADRs, resulting in an increase of 44.4% in the country’s RevPAR, said CBRE in its Q2 report. 

 

In the capital, Riyadh registered a 1.2 percentage point increase in its average occupancy rate accompanied by a 12.9% increase in ADR year-on-year in the year to date to June 2023. This has led to RevPAR increasing by 15.1%, it stated. 

 

On Jeddah, CBRE said it had witnessed a 9 percentage points increase in average occupancy and a 4% growth in ADR over the same period. This facilitated a 21.1% growth in its RevPAR. 

 

In Makkah and Madinah, average occupancies rose by 11.3 and 14.9 percentage points, while ADRs surged by 41% and 42.6%, resulting in a RevPAR growth of 70.5% and 77.4% respectively, it stated. 

 

Finally, cities in the Eastern Province saw a degree of fragmented performance in occupancy and ADRs, said CBRe in its report. 

 

While Dammam recorded growth in both its occupancy and ADR, Khobar saw a softening in ADR but saw a sharp increase in occupancy. Despite the softening in Khobar’s ADR, both Dammam and Khobar recorded a RevPAR increase of 6.1% and 8.7% respectively, it added.

 

"In the second quarter of 2023, Saudi Arabia’s real estate market continued to see its positive momentum," remarked Taimur Khan, Head of Research – Mena at CBRE.

 

"Market segments such as the kingdom’s hospitality, industrial and office sector have recorded strong rates of growth on the back of an influx of demand or a lack of suitable supply, or in some cases both, he added.-TradeArabia News Service