With an estimated 15 to 20 per cent growth predicted for the economy hotel industry in 2013, global hotel developers are planning mid-market hotels in Saudi Arabia, said experts at a hotel expansion summit in Riyadh.

The fourth annual Kingdom Hotel Expansion Summit concluded today (May 27) at the InterContinental Hotel.

The two-day initiative – organised by leading French business information company naseba – connected up to 300 prominent hotel developers, food and beverage heads, executive chefs, consultants and hospitality suppliers to address the latest developments in the Saudi tourism industry.

Ronald Egelmen, director of Development for the Middle East and Africa at InterContinental Group highlighted the local opinion of mid-market hotels as a recurring frustration.

“In any market [InterContinental] enters with regards to mid-market hotels usually the one-, two- or three-star establishments are operated by local companies who aren't maintaining the best standard,” he said.

“Hence the perception of these hotels is not representative of an international hotel chains targeting mid-range tourists. [At InterContinental] we have a brand value to maintain – which is reflected in every hotel we develop.”

Today’s opening keynote, entitled ‘The Potential of Mid-Market Hotels in the Kingdom’, was led by Shuja Zaidi, vice president of Projects at Hilton Saudi Arabia and general manager of the 1,413-room Makkah Hilton and Towers – the hotel chain’s largest property in the region.

He highlighted the lucrative future of mid-market hotels in Saudi Arabia, citing predicted trends in religious tourism as key drivers of growth.

The opening panel discussion; ‘The Budget and Mid-Market Brand Explosion in the Kingdom’, furthered the examination – and detailed how to succeed as a mid-market hotel specifically within Saudi Arabia.

The second panel discussion focused on the power of revenue management within the tourism industry, and provided attendees with the tools to implement the process outside of room rental costs.

The morning sessions concluded with Christopher Landis, managing director at Accord Middle East, stressing the importance of loyalty programmes.

“[They] help maintain a customer base and provide them with satisfaction,” Landis said.

“They are globally known as a value added benefit – and we just can't do without it. Imagine a world without loyalty programmes – in such a world the first companies to launch them would be outright market leaders,” he added. – TradeArabia News Service