Hyatt International is set to significantly expand its footprint in Saudi Arabia. The announcement was made during a meeting between Minister of Tourism Ahmed bin Aqeel Al-Khateeb and Tom Pritzker, chairman of the board of directors of Hyatt International, at the Ministry’s headquarters in Riyadh. The company plans to increase its hotel capacity from 1,700 to 5,000 rooms over the next five years, reinforcing its commitment to the Kingdom’s burgeoning tourism sector.
During their meeting, Minister Al-Khateeb praised Hyatt’s expansion strategy, highlighting its vital role in enhancing the Kingdom’s tourism infrastructure. “The expansion will contribute significantly to the Kingdom’s goal of developing the tourism sector and providing world-class services,” he said. Al-Khateeb emphasised the Kingdom’s commitment to increasing hotel capacity to more than 550,000 rooms by 2030 as part of the Saudi Vision 2030 plan, which aims to attract 150 million tourists by 2030 and increase tourism’s contribution to the GDP by 10%.
Pritzker expressed his enthusiasm for Hyatt’s expansion in the Kingdom, noting that Saudi Arabia’s rapidly developing infrastructure and supportive investor environment were pivotal factors in the company’s decision to grow its presence. “The excellent facilities provided by Saudi Arabia to investors encouraged us to expand in various tourist destinations across the country,” Pritzker said.
New Hyatt brand hotels for KEC
The news comes on the heels of another announcement, in which Hyatt announced it had signed management agreements with Knowledge Economic City (KEC) for two new Hyatt-branded hotels, Hyatt House Madinah KEC and Hyatt Centric Madinah KEC. Set to open in the highly anticipated Knowledge Economic City development in Madinah, the properties will add a combined 576 keys to Hyatt’s portfolio in the Kingdom.
Knowledge Economic City is a world-class development offering residents and visitors an integrated lifestyle experience, using technology and knowledge to link the project’s various components. The location is unique due to its direct connection with five of Madinah’s most important roads and the Al Haramain High-Speed Railway.
Javier Águila, group president of Europe, Middle East, and Africa at Hyatt, commented on the significance of the partnership: “We are delighted to collaborate with Knowledge Economic City on plans to bring the Hyatt Centric and Hyatt House brands to the exciting KEC development, enhancing the tourism landscape in Madinah. The Kingdom of Saudi Arabia is a key market in Hyatt’s growth strategy in the Middle East, and these upcoming properties in KEC reflect our dedication to expanding our brand footprint in new and desired destinations. We are also excited to debut the Hyatt Centric brand in Saudi Arabia, as we continuously aim to offer more choice to our World of Hyatt members looking to discover the magic of Madinah from the heart of the city.”
The two hotels will be part of Al Aliyah, the first phase of the Knowledge Economic City. Hyatt House Madinah KEC will include 446 residentially-styled rooms, providing a comfortable “home away from home” experience. Hyatt Centric Madinah KEC will feature 130 modern rooms and suites with art and styling elements that celebrate the character of Madinah.
Amin Shaker, chairman of KEC, expressed his enthusiasm for the collaboration: “We are excited to announce our strategic collaboration with Hyatt, marking a significant milestone for Knowledge Economic City (KEC). It is a testament to our shared values of excellence, innovation, and delivering extraordinary guest experiences. With the incredible and continuous support from HH Prince Salman bin Sultan, this relationship with Hyatt allows us to set new hospitality standards in Madinah and will contribute to the Kingdom’s development goals in line with Vision 2030.”
Tourism and hospitality at the forefront
Saudi Arabia’s tourism and hospitality sectors are at the forefront of the Kingdom’s business boom, as highlighted in the Ministry of Commerce’s Q4 2023 bulletin. The report showcases a flourishing commercial registration activity, marking significant strides in diversifying the economy.
- Resorts activity: The hospitality sector saw a substantial 51% annual increase in resort activity, culminating in 3,377,000 commercial records by the end of Q4 2023. Makkah played a significant role, accounting for 40.4% of this growth with 1,364,000 records.
- Boutique hotels: This niche within the tourism sector experienced a remarkable 74.4% surge, with commercial records amounting to 1,911,000. Once again, Makkah was at the centre of this growth, contributing 45.2% or 863,000 records.
- Marine recreation: Marine clubs saw a 49.1% increase in commercial records by Q4 2023.
These impressive statistics demonstrate the hospitality sector’s rapid growth in Saudi Arabia. The Red Sea coastline, Jeddah’s luxurious Rosewood Hotel, and other iconic properties have become prime destinations for high-end travellers.
Training and employment opportunities
A key aspect of Hyatt’s expansion involves contributing to training and employing Saudi personnel. The Ministry of Tourism continues to work diligently to empower Saudis in the tourism sector, and Hyatt’s role in this endeavour will be crucial. Minister Al-Khateeb stressed the importance of training and development in the Kingdom’s hospitality industry, highlighting the Ministry’s continuous efforts to build a highly skilled workforce.
