Hotel occupancy rate in Dammam/Khobar market grows to 11% in 3 months

Riyadh –  The Dammam/ Khobar market saw an improvement in hotel occupancy rate of 11% during the first quarter of 2019, compared to only 5% in Q1-18, according to a recent report issued by Colliers International on Sunday.

The Canadian-based global commercial real estate services organisation attributed the higher occupancy at the growing corporate demand from the oil industry.

Around 2,100 rooms were launched in Riyadh during the full-year 2018, the report entitled “MENA Quarterly Review” said.

Hilton Riyadh Hotel and Residences was the kingdom’s largest contributor with a total of 866 rooms, it added.

“New supply and macroeconomic conditions in traditional source markets have placed a consistent downward pressure on rates in the KSA market, which was evident in Q1 2019,” Colliers highlighted.

The hospitality market of the Saudi cities Jeddah and Madinah experienced a contraction in demand during Q1-19.

Colliers expects that the market might witness an improvement over the coming months due to initiatives by the Saudi tourism authorities impacting domestic and international tourism demand.

Additionally, the quality supply in Saudi Arabia is forecast to increase by 19% in the period between 2019 and 2021, with the largest number of keys expected in the Makkah market.