Preliminary data from STR for October 2023 shows that hotels in Saudi Arabia’s capital, Riyadh, reported their highest average daily rate (ADR) and revenue per available room (RevPAR) level on record.
The hotel occupancy rate hit 77.5%, a year-on-year increase of 8.0%. ADR was SR1,055.28, a 38.3% rise, and RevPAR was SR818.05, a significant 49.3% increase.
STR states that Riyadh’s hotel performance during the month was helped by the World Combat Games, held from 20 to 30 October, and the Future Investment Initiative 7th Edition, held from 24 to 26 October.
The four-day period from 22 to 25 October showed the highest ADR levels ever recorded, with 24 October taking the top spot at SR1,929.64. The previous daily room rate record was in January 2019, at SR1,415.20.
The market’s highest daily occupancy levels for the month were seen on Monday, 23 October at 94.8% and Tuesday, 24 October at 94.4%. Overall, Riyadh’s occupancy levels remained above the 60% mark throughout the month, apart from three days.
These rates are seemingly set to soar further. At the World Tourism Day conference held in Riyadh on 27 and 28 September, Saudi Tourism Minister Ahmad Al Khatib announced that 500,000 new hotel rooms will be built across the country to reduce its economic reliance on oil.
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To keep occupancy up, Saudi Arabia will be relying on its top source markets of Pakistan, Kuwait, India, Indonesia and Egypt.