Saudi Arabia’s hospitality sector poised for ‘significant’ rebound: CBRE

Saudi Arabia’s hospitality sector poised for ‘significant’ rebound: CBRE
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Updated 08 November 2021
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Saudi Arabia’s hospitality sector poised for ‘significant’ rebound: CBRE

Saudi Arabia’s hospitality sector poised for ‘significant’ rebound: CBRE

Hospitality in Saudi Arabia is poised for a significant post-pandemic rebound despite a 3.4 percent fall in the average occupancy rate in the sector, according to a report from real estate investment group CBRE.

The US-based firm's latest Saudi Market Review attributes the decline to a fall in occupancy levels in Makkah and Medina, which saw decreases of 11 percent and 1.1 percent compared to the same period a year ago.

The report expects improvement across Saudi Arabia’s key performance indicators thanks to the removal of occupancy restrictions and Covid-19 travel bans in mid-October.

“Major events such as the Saudi Arabian Grand Prix in Jeddah and the start of an extended Riyadh Season are expected to underpin both local and international leisure demand,” said head of research MENA at CBRE, Taimur Khan, adding: “Furthermore, the removal of the UAE from the red list will lead to a significant uplift in corporate tourism levels.”