Hospitality
Saudi Arabia boasts the most extensive hotel pipeline in the world—a fact well acknowledged across the hospitality industry. Each week, the market buzzes with announcements detailing properties and developments that promise unparalleled luxury and innovation, set to redefine the landscape of global hospitality in the years ahead… some time in the future.
The essential question for high-end travel advisors remains: What options are available NOW? Which properties currently offer the pinnacle of luxury and exceptional service that meet the exacting standards of the elite clientele? It is crucial to identify not only the potential gems but also to discern any pitfalls that might compromise the quality of the client experience.
In the upcoming year, which openings should be on your radar for inclusion in your strategic planning? Which establishments can you rely upon to deliver not just opulence, but truly extraordinary experiences that will delight even the most discerning traveller?
In this section, SAFE provides an incisive and impartial overview of the current state of play within Saudi Arabia’s luxury hotel sector. Our analysis is grounded in a commitment to neutrality, ensuring that you receive information that is not only comprehensive but also critically evaluated. This is your trusted source for insights into today’s luxury accommodations landscape, helping you make informed decisions that uphold the high standards your clients expect.
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The current state of play
With just over 42,000 rooms under construction at the moment – almost double that of the UAE, an impressive number of openings are scheduled for the coming months and years, making it hard to stay ahead of the game. Enter SAFE. We will keep you up to the minute in that respect.
Luxury and upscale segments dominate the current hotel supply, constituting, according to Knight Frank, 66% of the total; and the share of high-end properties is set to grow further. Ultra-luxury is the name of the game when it comes to resorts opening in the Red Sea project, of which all are exceptional.
With tourism growth outstripping supply in some cases, hotel operators are finding that KSA is somewhat of a goldmine, with room prices high at the best of times, and astronomical when major events are on in Riyadh, or for high season in AlUla. To this extent, RevPAR is highly variable. And while this is less of an issue for ultra-high net worth travellers, it can be of some concern when planning.
Under SAFE’s “hospitality” banner, we aim to give you an honest overview of the best properties in the “Where to stay in KSA” section.
As Arabian hospitality companies start to grow, they are set to go beyond their state borders and venture into new lands. For this reason, we created “Arabian Hospitality Beyond Borders”, keeping you up to date.
And in the knowledge that elite Saudi travellers venturing out into the world expect a certain level of service, we have added the section “Global Hospitality for Elite Saudi Guests”, spotlighting establishments not only offering the ultimate in comfort and service, but also having a solid understanding of Arab culture and customs.
Where is the investment coming from?
Most of the hotels in the “mega-projects” – such as the Red Sea, NEOM, and Diriyah – are financed by the PIF (Public Investment Fund). While the state-owned PIF is investing globally in countless projects, it is also financing not only the infrastructure of the kingdom’s mega-projects, but also the hotels and resorts being built under numerous brands within. In another process, an offshoot of the PIF, called ASFAR, the Saudi tourism investment company, co-invests with private & public sectors to turn promising cities in KSA into attractive destinations. Through strategic and destination investments, ASFAR taps into hospitality, entertainment, retail, and food and beverage sectors to put Saudi Arabia on the global tourism map. ASFAR partners with investors to transform promising potentials into a winning reality, driving the growth of the Kingdom’s tourism sector.
Women's growing role in the hospitality industry
The Saudi government has been proactive in fostering an environment where women can ascend to leadership roles across both the public and private sectors, with a strong emphasis on promoting gender equality. This commitment is evident in the government’s directive requiring tourism and hospitality companies to employ women across all departments.
Presently, Saudi women are increasingly prominent in hospitality management, benefiting from comprehensive training programs supported by the Ministry of Tourism and various Giga Projects, in collaboration with local and international institutions and universities. These initiatives are tailored to the demands of Saudi Arabia’s rapidly expanding hospitality labour market, providing participants with practical experience and essential skills in hospitality and management. This development marks a significant transformation in the sector, highlighting the growing contribution of Saudi women to the industry.
Major opportunities for savvy travel advisors
Finding the right “fit” when it comes to accommodation is not just a question of booking a “nice” hotel. It comes from understanding the philosophy of the brand and its approach to the KSA scene. A Ritz Carlton may attract a very different kind of client than a Six Senses. Or the client may like both. Here, the work of the travel advisor in fully understanding the client, and at the same time, fully understanding this market (both inbound and outbound) is what gives savvy TAs the edge.
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