Luxury hotel companies are flocking to Riyadh as the Saudi capital gains increasing regional and international prominence.
Fairmont on Sunday became the latest operator to announce a new hotel in the city. That followed an announcement last week that Kingdom Holding would build a second Four Seasons property in Riyadh.
"All the big brands are hot on Riyadh," said Chiheb ben Mahmoud, the senior vice president at Jones Lang LaSalle Hotels for the Middle East and Africa.
Fairmont said it planned to open a 287-room luxury hotel and a 4,000 square metre convention centre in the city. The project is expected to open next year.
Other hotels under development in Riyadh include a Ritz-Carlton, a Kempinski and a Moevenpick. "Riyadh has been lagging," said Mr ben Mahmoud. "There has been a discrepancy for some time between its role as capital of the kingdom of Saudi and the quantity and quality of its hotels."
Foreign visitors to Riyadh are primarily business travellers. The city also receives some Saudi leisure tourists.
"Now Saudi Arabia is catching up very quickly to boost its hotel offering in line with the growing regional importance of Saudi Arabia," said Mr ben Mahmoud. "Saudi Arabia is part of G20. It has an increasing regional role and that requires a certain level of hospitality infrastructure."
But development is moving ahead at a significantly slower pace than the rapid expansion that has been seen in the UAE, he said. "They have a more prudent approach to hotel investments. It is slow, but the amount of interest is high."
The Fairmont Riyadh is part of a mixed-use development called Business Gate.
Saudi Arabia also has significant interests in some of the hotel companies expanding in the country.
Fairmont is owned by Fairmont Raffles, in which Prince Alwaleed bin Talal bin Abdulaziz Al Saud's Kingdom Holding has a 35 per cent stake.
Kingdom Holding also has a substantial stake in Moevenpick Hotels and Resorts, and a 47.5 per cent stake in Four Seasons.
Average occupancy levels last year in Riyadh fell to below 60 per cent and average rates declined, leading to an almost 11 per cent drop in revenue per available room, according to a report by Jones Lang LaSalle.
The consultancy said this was a reflection of the global economic slowdown. But it added that the luxury hotel market had outperformed the market, citing "strong demand" for five-star accommodation.
"The five-star market remained relatively stable over the first half of 2010, however the third quarter experienced the normal seasonal decline in performance associated with Ramadan and the summer holiday period," the report stated.
rbundhun@thenational.ae
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
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Indoor Cricket World Cup Dubai 2017
Venue Insportz, Dubai; Admission Free
Day 1 fixtures (Saturday)
Men 1.45pm, Malaysia v Australia (Court 1); Singapore v India (Court 2); UAE v New Zealand (Court 3); South Africa v Sri Lanka (Court 4)
Women Noon, New Zealand v South Africa (Court 3); England v UAE (Court 4); 5.15pm, Australia v UAE (Court 3); England v New Zealand (Court 4)
JAPAN SQUAD
Goalkeepers: Masaaki Higashiguchi, Shuichi Gonda, Daniel Schmidt
Defenders: Yuto Nagatomo, Tomoaki Makino, Maya Yoshida, Sho Sasaki, Hiroki Sakai, Sei Muroya, Genta Miura, Takehiro Tomiyasu
Midfielders: Toshihiro Aoyama, Genki Haraguchi, Gaku Shibasaki, Wataru Endo, Junya Ito, Shoya Nakajima, Takumi Minamino, Hidemasa Morita, Ritsu Doan
Forwards: Yuya Osako, Takuma Asano, Koya Kitagawa
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In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
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Blackpink World Tour [Born Pink] In Cinemas
Starring: Rose, Jisoo, Jennie, Lisa
Directors: Min Geun, Oh Yoon-Dong
Rating: 3/5