Saudi Arabia Is Still Betting Billions on Hotels, With 19 Projects Approved

On October 19, Saudi officials unveiled the first wave of 19 approved hospitality projects, with a reported combined value of about $1.8 billion. The announcement shows the kingdom is pressing ahead with its plan to build a large tourism sector, even as regional security concerns weigh on travel and as the US State Department urges Americans to reconsider trips there.

Hotel groups are already positioning for the opportunity. IHG recently passed 1,000 operating hotels in Europe and reported third-quarter revenue per available room growth of 5.3 percent, yet noted that some of its Saudi projects may face delays. That combination, ambitious pipelines and cautious timelines, is the same pattern other global chains describe in the Gulf.

What the 19 projects will look like has not been set out in the coverage reviewed here, and the $1.8 billion figure is a reported total rather than an audited one. Still, an approval is a milestone: it moves a project from concept toward financing, permits and construction, which is where many large hospitality schemes slow down or change scope.

For travelers, new hotels in Saudi Arabia will not change the immediate risk picture, and those considering a trip should read the latest government advisories and check airline schedules before booking. Over the longer term, more rooms in Riyadh, Jeddah and tourism zones along the Red Sea would give visitors more choice, and could ease the tight pricing that surges around major events and pilgrimage seasons.

Sources: eTurboNews, Fox News