The total number of hotels in the kingdom, including operational and under development, is set to reach 40
The Middle East remains a key focus for Radisson Hotel Group’s global development strategy, which is expanding its presence in Saudi Arabia with the opening of six hotels in 2021.
Tim Cordon, Area Vice President for the Middle East and Africa, told Arabian Business that these properties will be opened in Riyadh, Makkah and Damman, bringing the total portfolio of hotels in the kingdom to 40, including both operational and under development.
Among the hotels that will open in September this year are Park Inn by Radisson Riyadh and Park Inn by Radisson Jeddah Madinah Road. Also scheduled to open later in 2020 are three hotels in the Kingdom’s capital Riyadh including Mansard Riyadh, A Radisson Collection Hotel; Radisson Blu Riyadh Ricec; and Radisson Riyadh Airport.
According to Cordon, the hotel chain is also “exploring many different opportunities” with the giga projects in the kingdom, which include The Red Sea Project, Qiddiya, Neom, and Diriyah Gate.
Meanwhile, Cordon said that in the UAE Radisson Hotel Dubai Damac Hills and Radisson Resort Ras Al Khaimah are planned to be opened later this year.
With these openings the total number of Radisson-branded properties in the UAE will be 24, which include hotels that are operational and under development.
Upscaling to economy segment
According to Cordon, upscaling to the economy segment within the hotel industry is a part of the wider trend in any developing market.
He told Arabian Business: “In Dubai the midscale segment has exploded over the last couple of years. And it kind of needed to, because in Dubai there are over 100,000 rooms available everyday.”
“The exposure to mid-scale and the impact it has had on Dubai’s Average RevPar is very cost-effective in the long-term,” added Cordon.
The Radisson Grand, a mid market brand that has presence in the US, Asia Pacific and Europe, was launched in the UAE three years ago.
“We have recognised that over the past five or six years, the average rate in the Middle East, has trended downwards, and our reaction to that has been to have the most efficient hotels that we possibly can have,” concluded Cordon.
Story originally appeared in Arabian Business here.