Global provider of sales, marketing and distribution services company for independent luxury hotels Preferred Hotels and Resorts has inked a deal for two new 5-star hotels in the Saudi Arabia and one 5-star hotel in Bahrain.
The three additions consist of a duo of ultra-boutique properties in the Saudi capital Riyadh, namely the Vivienda Residences and Vivienda Granada, along with independent luxury leader, The Domain Hotel and Spa, in Manama, Bahrain. All three properties join the Preferred Hotels and Resorts LVX Collection of refined and globally sophisticated hotels and resorts, marking the company’s debut into the two key markets.
“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, all three 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 generted 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% 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% to 64.8%), but a double-digit rise in ADR (+14.2% to SAR816.60) which drove a double-digit increase in RevPAR (+13.6% to SAR528.86) 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.