Saudi Arabia’s Dur Hospitality has revealed plans to invest SR1.5 billion ($399.8 million) in a portfolio of 20 hotels and six residential complexes in the kingdom over the next seven years.

"The market is promising,” said Dr Badr Al Badr, Dur Hospitality's chief executive officer, based on data released by reputable resources who expect around 25 million visitors to Makkah and Madinah by 2025.

The sources also forecasted domestic tourism expenditure growth to increase by 11 per cent annually and inbound tourism by 13 per cent annually, especially after the completion of the two Holy mosques and the mega infrastructure projects.

Dur Hospitality is further planning to expand into emerging cities in Saudi Arabia such as Jubail, Yunbu and Tabuk, announcing its first Holiday Inn in Tabuk - the first hotel to be developed under the master development agreement (MDA) inked between InterContinental Hotel Group (IHG) and Dur Hospitality last year.

As investors continue to favour hotels as suitable investment assets, Dur has developed an operational strategy to cope with those who are looking for the perfect hospitality partner by introducing three operational models:

• The Dur-owned hotels operated by international brands that rely on management agreements with international operators, under which falls the Marriott partnership since 1979 which will soon announce two new projects in Riyadh;
• Hotels operated by Dur Hospitality under its 10-year-old operational brand, Makarem that has recently re-launched its new brand identity and announced 10 new hotels in the coming five years;
• Franchise agreements, represented by the partnership with IHG.

Looking at the challenges that faced the regions hospitality industry, Dr Badr highlighted Saudisation as the prime task, saying the focus should be on attracting Saudi calibres to work in the hospitality industry. – TradeArabia News Service