Asian hotel brands are betting big on Saudi Arabia

Saudi Arabia’s aggressive development of locations such as AlUla, NEOM, Diriyah Gate and more for tourism activities has attracted the attention of hospitality brands with roots in Asia, with several openings on the way.

Minor Hotels, Dusit Hotels & Resorts and Banyan Group are among those viewing the destination with optimism.

Minor Hotels has signed agreements to open two hotels in Saudi Arabia under the luxury hospitality brand Anantara. The two properties in NEOM’s Trojena and Diriyah Gate are expected to be operational in 2027.

Speak with TTG Asia Speaking at the Arabian Travel Market 2024 this week, Ian Di Tullio, Chief Commercial Officer of Minor Hotels, said: “Saudi Arabia has incredible resources, whether it be heritage, culture or nature. It offers tourism experiences that are second to none. I think that in the next ten years, Saudi Arabia will be among the top 10 tourist (destinations) worldwide, if not among the top five. We have a number of hospitality projects we are working on with Saudi Arabia’s Tourism Development Fund (TDF). Over the next decade, we plan to expand our presence in Saudi Arabia by adding 30 hotels across brands to our portfolio.”

Dusit Hotels & Resorts signed its first hotel in Saudi Arabia – Dusit Princess Al Majma’ah, Riyadh – which is expected to be operational late this year or early 2024.

“The Saudi Arabian tourism market is growing at a different level. We are excited to open our first hotel in the country. We are currently in discussions with many interested parties to expand our presence in Saudi Arabia. What serves us well is the fact that as a Thai hospitality brand, there is good awareness about our hotels in Saudi Arabia and the Middle East in general,” said Nichlas Maratos, vice president – ​​commercial, Dusit Hotels & Resorts .

Asian hospitality companies expect the domestic market to primarily drive demand.

“We will create tourist destinations within Saudi Arabia for locals to explore. High demand is expected to be generated by the other GCC (Gulf Cooperation Council) countries, followed by India and other Asian markets such as China and Thailand. Europe will also contribute to overall demand,” Tullio said.

Contrary to the widespread belief that Saudi Arabia focuses exclusively on luxury travel, Tullio sees potential for mid-range to luxury accommodations.

Banyan Group currently has one operational property: Banyan Tree AlUla. Another one is expected to open in the kingdom.

In total, Saudi Arabia plans to add 250,000 hotel rooms by 2030.