According to a senior executive, Radisson Hotel Group intends to establish 100 hotels in Saudi Arabia.
Radisson Hotel Group has announced its plan to expand its presence in Saudi Arabia with 100 hotels in the next five years, according to Elie Younes, executive vice president and global chief development officer. Speaking on the sidelines of the Future Hospitality Summit in Riyadh on Monday, Younes revealed that the planned expansion will create more job opportunities in the country. Currently, the Radisson hotel group has around 50 hotels in Saudi Arabia, with 25 open and 25 under construction. Younes said, “our plan for the next five years is to double that, and that means to have almost 100 hotels across Saudi Arabia.”
If every Radisson hotel has 200 rooms, each property will employ approximately 150 people. Younes said, “if you are opening another 50 hotels, you can imagine the multiplying effect this will have on the economy and job creation.” He said the hotel group wishes to become a part of the Kingdom’s hospitality sector’s expansion story, and it would not only focus on key cities to open its hotels but also concentrate on upcoming “secondary and economic cities” in the country.
According to Younes, the group is not planning to open an additional 50 exclusively luxury hotels in Saudi Arabia over the next five years. Instead, the company will explore investment opportunities in 50 mid-scale lifestyle hotels in the Kingdom. “Will we do 50 luxury hotels in Saudi Arabia over the next five years? I don’t think we will do that. But will there be investment opportunities for mid-scale lifestyle hotels across the Kingdom in the next five years for 50 hotels? I certainly would bet on that,” he said.
Talking about the group’s global plans, Younes said the plan is to expand the number of properties from 1,500 to 3,000 within the next five to seven years. “If you look at the region (Middle East), we currently have around 75 (Radisson hotels). And the plan is to double that in the next five years to become hopefully 150 hotels. So, today, we have about 1,500 hotels globally, and the idea is to double that in the next five years and make it around 3,000 hotels,” he added.
Younes also praised the Saudi government’s regulatory reforms in the private sector, saying these reforms should evolve daily. “This is an evolving evolution, let us put it that way, where both the private and public sectors continue putting efforts to achieve the goals. So, policy and investment in infrastructure, and providing subsidies to investors and enabling operations are all integral elements for the future of Saudi Arabia,” he said.
The Kingdom’s travel and tourism sector is buzzing with activities and is offering immense investment opportunities, with a focus on expanding the tourism sector, attracting foreign investors, and increasing the number of local and international visitors. According to recent reports, the total number of hotel rooms in Saudi Arabia is set to increase by 67,000 over the next five years, with a focus on developing new cities and enhancing existing ones.
Radisson Hotel Group’s expansion plans in Saudi Arabia come as the Kingdom’s tourism sector undergoes a transformation under Vision 2030, a roadmap for economic and social reforms. The government aims to increase the number of annual international and domestic visitors to the Kingdom, which could create a significant demand for new hotel properties in the country.
Radisson Hotel Group’s commitment to expanding its footprint in Saudi Arabia is a testament to the Kingdom’s potential as a destination for travelers and investors alike. With its strategic location, rich culture and history, and diverse natural landscapes, Saudi Arabia has much to offer to both domestic and international tourists.
