Hotel Business Booms in Saudi Arabia

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More wealth in Islamic countries is leading to greater demand for luxury accommodations in Saudi Arabia.

Business for hotels and resorts is picking up in preparation for Hajj, the Islamic pilgrimage to the Holy Site of Mecca in October.

Managers at the InterContinental Hotel have added luxury airport service, and Hilton is planning to double the number of hotels it holds in Saudi Arabia, including six more developments in and around Mecca.

Starwood, the banner above the St. Regis and W Hotel chains, is planning to expand its stable of 10 hotels to 15 resorts in the coming years. The growth will add about 1,300 rooms to its current 3,000 room inventory in Saudi Arabia.

Saudi hoteliers are also expanding; Saudi Hotels & Resorts Co. plans to add four hotels to its 10 holdings.

Revenue per room in Mecca rose 43 percent in the first quarter of 2012.

Source: Bloomberg

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