Saudi based Designs Group has announced its strategic alliance with Warwick Hotels & Resorts (WHR) for the management of new properties featuring 1000 rooms in the Kingdom. The agreement will come into effect from the beginning of 2019.
Making the announcement at The Hotel Show in Dubai, Eng. Mohammad Al-Nadi, CEO of Designs Group, stated, “We are very pleased to collaborate with Warwick Hotels & Resorts for our upcoming projects in Saudi Arabia. These hotels are situated in prime locations and are being developed to offer world-class facilities. We are confident WHR will add great value to the projects with their vast global and regional experience and expertise. Our business strategy is in line with Saudi Vision 2030 that recognises the role religious tourism can play in diversifying the economy and is therefore fuelling the demand for quality hotels. The market is currently under supplied in terms of hotels and projected to show strong growth in future that we are well placed to capitalise on.”
With the expected completion of the Holy Mosque and various infrastructure developments coupled with the anticipated recovery in feeder market’s economies in the mid to long term, the Kingdom aims to welcome 30 million pilgrims by 2030.
Mr. Jamal Serhan, Senior Vice President WHR / Chief Executive Officer MENA, stated, “Saudi Arabia is an extremely significant market for us with a growing demand for hotels. We are delighted to expand our footprint in the Kingdom where we already have seven hotels and very excited to penetrate new destinations with a reputable partner like Designs Group. We are truly grateful to them for having given us this fantastic opportunity.”
Religious pilgrims currently contribute 2-3% of Saudi’s GDP. Therefore, there are plans to roughly double the capacity to accommodate both Umrah and Hajj visitors to around 15 million and five million respectively by 2020. In addition to massive development of hotels, the Saudi government is investing in major transport infrastructure to grow tourism such as the new Jeddah airport and the Haramain High Speed Rail line linking the holy cities of Medina and Mecca via King Abdullah Economic City, Rabigh, Jeddah, and the new Jeddah airport. It is also doing significant investment in large-scale leisure, cultural and entertainment projects.
