Saudi Arabia hotel oversupply is a ‘current issue’, says Dur Hospitality’s CEO
However, the solution is not that difficult, believes Saudi’s Dr Badr bin Hamoud Al Badr
Talking to Hotelier Middle East, at the Arabian Hotel Investment Conference (AHIC) at Ras Al Khaimah, Dr Badr bin Hamoud Al Badr spoke about the challenges that the Saudi Market is currently facing.
“Over supply is an actual issue right now in Saudi Arabia, it isn’t an issue for the future right now. However, the solution is not difficult. We need the demand to grow and the government is working on developing Saudi Arabia as a tourist destination, when these plans come to be, the supply demand will be met,” said Al Badr.
According to the “serial entrepreneur” the oversupply is coming at a time when the economy is low. He explains, “The oversupply is happening at a time when the economy is at a low point, but it is growing. Consumer spending and purchasing power is a low and that really affects a part of our business.”
Several hotel groups are planning huge scale expansions in the Kingdom, but Dur Hospitality is playing it safe. “We’re not planning to expand; we’re just working on the hotels we already have," said Al Badr.