Rental prices of rest houses rocket

Rental prices of rest houses, or Istiraha, rocketed during Eid holidays in Riyadh, Jeddah, Madinah and Dammam, experts said.
The occupancy rates of the rest houses reached 100 percent due to Eid season and post-holidays, and rush to booking while the luxurious furniture and decoration considerably contributed to price hikes.
Iman Al-Majnoni, a citizen in Jeddah, says the phenomena of the rental prices of the rest houses going for twice the normal rate during and after Eid is unjustifiable.
He called for price control in certain seasons to avoid manipulation, adding that prices in northern Jeddah go up to SR2,500 per day instead of SR1,400 on normal days.
Khalid Dosary, another citizen, said families used to spend Eid in rest houses every year at this time where relatives and friends come together to share Eid greetings.
In Madinah, meanwhile, citizens said prices of rest houses have increased by 200 percent during Eid holidays, reaching SR3,500 per day compared to the usual day rates. Many rest house owners rejected bookings for ordinary holiday-makers and instead reserved them for permanent customers, they said.
Adil Al-Harbi said some of rest house owners in Madinah eve reduced the rental hours from 24 to 12 hours for SR3,500 to maximize profits.
Badr Al-Harbi, another citizen, said searching for a rest house during Eid and the days following has become an arduous task. He said the average price of a rest house separated into male and female sections is not less than SR3,000 for a 24-hour period compared to SR1,000 in normal days.
Abdullah Al-Sahli, the owner of a rest house in northern Jeddah, said the rate of occupancy has reached 100 percent despite rental price hikes. He said large rest houses are more attractive than the smaller ones during these days.
Ahmed Al-Qarni, an investor, said he has invested his money in one rest house in the eastern parts of the highway for six months to keep it re-rented for customers during Eid where profits normally soar. Although the rest house is not as spacious or luxurious, the price reaches SR900 per night compared to only SR300 in normal days.
Mohammed Al-Juhani, another investor in Madinah, said rest houses are considered the most appropriate “outlet” for the people in the city, especially during Eid and similar occasions.
Al-Juhani admitted that some owners have raised prices to exaggerated levels as high as 200 percent. Prices differ based on the space, services and other facilities, he said.
In Riyadh, prices of the rest houses have rocketed due to Eid season to reach SR2,000 per day compared to SR200-300 during off-season days.
Experts said the number of rest house in the capital city of Riyadh has shrinked due to the expansion of developmental and construction projects in the city during the last decade at the expense of rest houses and “white” (vacant) lands.