Maalouf: We Plan to Establish 29 Hotels in Saudi Arabia
Elie Maalouf, the visionary leader of IHG, shared ambitious expansion plans. He revealed the group’s intention to open 29 new hotels across Saudi Arabia. A major highlight is the introduction of the first Kimpton hotel in the region by 2024, according to Asharq Al-Awsat.
IHG’s Growth Spurt in 2023
The year 2023 marked a significant phase in IHG’s expansion. The group successfully opened five new properties, enhancing their presence with 3,155 additional rooms. This move aligns with IHG’s growth strategy, with plans to introduce even more hotels, totaling 10,314 rooms, across the Kingdom.
Building Stronger Partnerships
Maalouf stressed the importance of collaborating with key stakeholders. These partnerships are crucial for supporting Saudi Arabia’s Vision 2030. They aim to bolster the expansion of IHG’s hotels and resorts, reinforcing their commitment to the Kingdom’s hospitality sector.
Anticipating a Flourishing Future
The hospitality sector in Saudi Arabia is on an upward trajectory. Maalouf forecasts a rise in revenue to $2.93 billion by 2024, growing annually at 3.33%. By 2028, he expects the market to further expand, reaching $3.34 billion.
Global Brands Make Their Mark
IHG is not just expanding its footprint but also bringing world-renowned brands to Saudi Arabia. This includes Regent, Kimpton, Vignette Collection, and Six Senses. Moreover, these brands signify IHG’s commitment to offering top-tier hospitality experiences.
Leveraging Business Tourism
The business tourism segment has played a pivotal role in boosting hotel occupancy rates by 5.9% annually as of Q3 2023. Moreover, this surge in demand underscores the growing importance of luxury hospitality and MICE facilities within the Kingdom.
Strategic Moves and Agreements
IHG’s strategy includes forming alliances, like the management agreement with KAFD. Additionally, this collaboration will introduce the InterContinental and Regent brands in Riyadh, with plans to unveil the first Kimpton hotel by June 2024.
Overcoming Industry Challenges
Despite facing supply chain disruptions and infrastructure demands, IHG remains focused on growth. The group is dedicated to employing individuals who exemplify the IHG ethos, ensuring the brand’s standards are upheld.
Empowering Local Talent
IHG is committed to the development of local talent, with nearly half of its workforce in Saudi Arabia being Saudi nationals. The goal is to hire 6,000 Saudi citizens by 2030, in a collaborative effort with the Ministry of Tourism, showcasing IHG’s commitment to contributing to the local community.
Path Forward
In conclusion, as IHG approaches the completion of half its development projects in the region, Saudi Arabia stands out as a land of opportunity for the hospitality industry. Maalouf’s optimism towards attracting significant investments is indicative of the promising prospects that lie ahead for IHG, spurred by the Kingdom’s Vision 2030 objectives. This vision is set to redefine the economic landscape, with IHG positioned as a key player in the hospitality sector’s transformation.
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