Kingdom’s multiple destinations – not the least of which are the Holy Cities as well as the Red Sea coast – isn’t stressed enough. “Riyadh’s hospitality is rising to match the status of the Kingdom’s Capital
as a regional and global powerhouse. Similarly, Jeddah’s hospitality offering will match the cosmopolitan nature of the city,” he concludes.
STRONG DEMAND According to JLLS, the seasonality of the Jeddah hotel market is modulated by demand from three sources: business travel, summer tourism and religious tourism. A number of transportation investments are going to increase travel capacity, in particular the new KAIA airport terminal and the high-speed railway linking Jeddah to Makkah, Madinah and the King Abdullah Economic City. Contracts for the rail link have now been awarded and civil works have already commenced. JLLS says other plans that could stimulate additional hospitality demand within the Jeddah market include the Jeddah Development and Urban Regeneration Company (JDURC) which plans to create more parks and improve public spaces such as the Corniche and Tahlia Street, which should sustain additional domestic demand. Te business travel market is likely to be further stimulated by the proposed large new conference centre in Jeddah.
FUTURE OUTLOOK In Jones Lang LaSalle’s Jeddah City Profile Q2 2010, statistics quoted
from the Tourism Information and Research Center, revealed there are 18,000 hotel rooms in Jeddah, which accounts for 8.7% of the total for Saudi Arabia. Tese figures place Jeddah behind Makkah and Madinah but ahead of Riyadh in terms of room stock. Around 17% of the Jeddah hotel inventory is in the 5-star category, with a further 28% of rooms in the 4-star category. Looking ahead, JLLS says Rocco Forte will soon bring his unique approach
to Jeddah with a project on Tahlia Street. Te two-tower 19-floor hotel is due to open this year and will consist of 159 rooms, with a high proportion of suites, and around 50 serviced apartments. Other facilities are set to
include a 90-seat restaurant and a second 70-seat fine-dining venue, a business centre and 700sqm ballroom, as well as a further 1000sqm of conference space. Another addition will be the Kempinski Hotel, Jeddah, which is scheduled to open in 2012 and will be located on Jeddah Corniche overlooking the Red Sea. Designed to be the first green intelligent hotel in the Kingdom of Saudi Arabia, the 240-metre high tower will comprise 321 rooms, of which 250 will be luxury guest rooms and suites, while the rest will be serviced apartments spread over its 56 floors. Te hotel will include: luxurious leisure suites, two restaurants, a 1000 sqm ballroom, a wellness centre and spa, fitness centre and swimming pool. Corporate facilities will include modern meeting rooms, VIP rooms and business suites. It is estimated that Jeddah’s hotel room supply will increase to around 5,519 quality hotel rooms by 2013. Te JLLS report concludes: “With the future supply of rooms being
relatively modest and delivered gradually, the market is expected to recover slowly over the next few years. “Te sustained restoration of the city’s infrastructure and leisure scene and the upgrading of the water front area that is taking place (e.g. the Prince Abdul Majeed fountain and the development of the public entertainment areas that include parks) is expected to prolong the hospitality sector. Te expansion and future development of the city will introduce new hospitality projects, especially targeting new areas to the north of the city ” l
Main Photo: Park Hyatt - Jeddah Above: Rocco Forte Hotel - Jeddah
JUNE 2011 I CITYSCAPE I 15
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