In keeping with its strategy to prioritize expansion in GCC focusing on markets with high growth potential for the group, HMH – Hospitality Management Holdings is aggressively targeting opportunities in KSA.
Speaking at the Arabian Travel Market 2016, Laurent A. Voivenel, CEO of HMH stated, “Saudi Arabia is a land of opportunity both in terms of domestic, inbound and outbound tourism as well as religious tourism and is a pillar of our expansion strategy that is aimed at capturing maximum market share in the GCC. In terms of development, 36% of the total Coral Hotels & Resorts portfolio, that is our flagship 4 and 5-star brand, is currently located in Saudi Arabia and we are eager to build on our success in the country. KSA is also one of the largest source markets for most of our operating hotels.”
Laurent added, “In Q1 of 2017, we have a superb opening coming up with Coral Al Madina Hotel in KSA that will tremendously boost our product offering in the country. The luxurious 5-star hotel has been conceived to be a prestigious address for discerning travellers to Madina and is superbly located just across the road overlooking the Holy Mosque. The hotel is being developed to be the first ‘Smart’ hotel in Madina offering the most advanced technology including high-tech smart rooms. Featuring 400 plus rooms and suites, Coral Al Madina Hotel is spread over 10 floors and five basements. Included in its extensive facilities are three superb restaurants, lobby lounge, luggage room, shopping arcade, fully-equipped gym and spa, two state-of-the-art meeting rooms, business center and large parking space as well as helicopter landing site. All rooms are designed with the guests’ comfort in mind and offer the ultimate in convenience and luxury, coupled with incomparable views of the Holy Mosque. Each room is thoughtfully equipped for pilgrims and families who desire to enjoy the serenity of the Holy City”.
According to a recent industry report Saudi Arabia is witnessing a significant shift towards development of mid-range hotels with six out of the top ten brands focusing on mid-market. Like the rest of the region, the mid-market hospitality segment is currently under-supplied in Saudi Arabia, pushing the demand for quality serviced apartments as well as 3 and 4-star properties.
Elaborating on the trend, Laurent said, “The scale of opportunity in the region for mid-market / budget hotels is unprecedented and, therefore, mid-market travel has been rightly identified as the official show theme for ATM this year. Expanding airline network especially low-cost carriers, increased airport capacity, growing middle class, emerging source markets, continued development of leisure and commercial areas as well as massive investment in tourism infrastructure in cities like Riyadh, Jeddah, Makkah and Madinah, is fuelling the demand for affordable accommodation. At HMH we are well-placed to serve this segment with three brands out of five targeting middle class”.
Saudi Arabia is the second largest hub for hotel construction in the Middle East and Africa, behind only the UAE. According to figures available from World Travel & Tourism Council, the direct contribution of Travel & Tourism to GDP was SAR68.4bn (2.4% of total GDP) in 2014 and is forecast to rise by 4.3% pa until 2025, to SAR110.8bn (2.8% of total GDP) in 2025. Likewise Travel & Tourism investment will rise by 4.3% pa over the next 10 years to SAR149.1bn in 2025 (12.7% of total).
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Founded in 2003 in Dubai, HMH – Hospitality Management Holdings is a fully-integrated hotel management company that prides itself on being one of the pioneers among local groups from the region. It provides hotel owners and developers a broad spectrum of comprehensive management solutions with five distinct, yet complementary, hotel brands catering to varied market segments from budget to luxury. These include The Ajman Palace Hotel, Coral Hotels & Resorts, Corp Hotels, EWA Hotel Apartments and ECOS Hotels. Through its dynamic operation and strategic expansion in the Middle East and North Africa, HMH has been successful in unlocking a world of opportunities while creating value for its stakeholders, associates, staff members and customers. Its existing portfolio features superb properties located in some of the most desirable destinations across the MENA region, as well as a healthy pipeline of hotels under development.