Preferred Hotels & Resorts expands portfolio to Saudi Arabia
Preferred Hotels & Resorts, a leading hospitality service provider, continues to expand its Middle East portfolio with the addition of two new five-star hotels in Saudi Arabia.
The additions consist of a duo of ultra-boutique properties in the Saudi capital Riyadh, namely the Vivienda Residences and Vivienda Granada.
Both properties join the Preferred Hotels & Resorts LVX Collection of refined and globally sophisticated hotels and resorts and represent the company’s debut in a key regional market.
“This is a milestone moment in the development of the Preferred Hotels & Resorts brand in the Middle East. We are making great strides in the region’s dynamic hospitality market, which is synonymous with luxury global and regional brands as well as unique independent hotels and provides strong synergy with Preferred’s exacting brand values,” said Saurabh Rai, executive vice president, Preferred Hotels & Resorts.
Effective immediately, both properties have the opportunity to capitalise on Preferred’s 48-year tourism industry pedigree, with access to its innovative sales and marketing expertise and network of sales professionals located in 35 offices worldwide.
In 2015, Preferred showcased the value it brings to its hotel partnerships by generating more than $1 billion in collective reservations revenue for its member properties around the world. Thus far in 2016, the brand’s success in supporting independent hotels has continued to be strong, producing a 19 per cent increase in reservations revenue for member properties globally from January through August 2016, compared to the same time period in 2015.
According to hospitality research firm STR, in Q2 2016, hotels in Saudi Arabia experienced nearly flat occupancy (-0.5 per cent to 64.8 per cent), but a double-digit rise in ADR (+14.2 per cent to SR816.60) which drove a double-digit increase in RevPAR (+13.6 per cent to SR528.86) compared with the same period in 2015.
The market is also experiencing exponential growth, reporting the most rooms 'in construction' among the countries in the Middle East and Africa, with 35,770 rooms in 81 hotels. Riyadh alone has 6,657 rooms in 30 hotels under construction. Given the Saudi government’s diversification strategy, the extra rooms will be needed. Economic analysts expect that by 2020 the number of tourists visiting the kingdom will increase from 200,000 to 1.5 million.
Deputy Crown Prince Muhammad Bin Salman has rejuvenated the kingdom’s tourism sector as the strategic plan aims to increase the revenue generated from tourism to 18 per cent of GDP in the next 14 years. To put that into perspective, in 2015 oil revenue alone accounted for more than 70 per cent of overall government revenue.
The highly sought-after Vivienda Residence, which is comprised of 12 stunningly designed and furnished private villas offering 134 to 634 -sq-m of living space, is close to the iconic Kingdom Tower. The gated residence features a pool, gym, all-day Italian restaurant and is about to unveil its own pop-up concept with a calendar of visiting Michelin-starred chefs.
Sister property, the 48-room Vivienda Granada, is also an all-villa property, with a collection of three-bedroom residences located in the new financial district of Al Shohada, just a 30-minute drive from the international airport and set within 33,000 square metres of landscaped grounds.
The hospitality giant also recently welcomed Bahrain's The Domain Hotel and Spa to its portfolio.
A leading independent property in Manama, The Domain Hotel & Spa offers 131 guestrooms and suites and is located in the upscale, and popular, diplomatic area of the Bahrain capital, and just 7 km from the airport. The hotel is also a popular choice for corporate and social events with a suite of conference facilities.
Other recent additions to Preferred Hotels & Resorts’ burgeoning Middle East portfolio include the soon-to-be-opened Duked Dubai and a number of hotels under the Katara Hospitality portfolio in Qatar such as Simaisma, A Murwab Resort. A total of 91 new properties joined forces with Preferred Hotels & Resorts in 2015, and an additional 55 properties have been welcomed into the brand portfolio thus far this year. - TradeArabia News Service