Saudi Arabia's hospitality sector has seen relatively strong performance levels all around, with average occupancy increasing by 11.5 percentage points and ADR and RevPAR rising by 32.3% and 58.6% respectively, year-on-year in the year to date to March 2023, according to leading real estate expert CBRE.
On a city level, with the removal of visitation restrictions and the start of the month of Ramadan, the Makkah and Medinah saw a sharp increase in occupancy levels of 21.2 and 18.5 percentage points respectively over the same period, it stated.
Their ADRs also rose significantly by 91.5% and 62.0%, which underpinned RevPARs increasing by 166.2% and 108.9% respectively.
In Jeddah, over the same period, the average occupancy rate and ADR rose by 7.9 percentage points and 4.8%, which led to a 21.5% increase in its RevPAR, stated the expert.
CBRE pointed out that In Riyadh, despite a marginal decline in occupancy of 0.4 percentage points, a 12% jump in ADR has meant that the capital’s RevPAR increased by 11.3%.
Finally, the Eastern Province’s hospitality market largely recorded lackluster performance year-on-year in the year to date to March 2023, with RevPARs in Al Khobar increasing by only 1.6% and falling by 8.0% in Dammam, it added.
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