IHG reports 65% rise in occupancy rates, plans 23 new hotels: MD

Haitham Mattar, Managing Director, India, Middle East & Africa (IMEA), IHG

The promotional campaigns launched by the Ministry of Tourism contributed to supporting domestic tourism in Saudi Arabia, Haitham Mattar, Managing Director, India, Middle East & Africa (IMEA), IHG Hotels & Resorts, told Argaam in an exclusive.

Occupancy rates at the group’s hotels rose over 65% in Riyadh, Jeddah and the Eastern Province, he added.

The government support for the sector and attracting foreign investments helped the group hold the lion’s share in occupancy rates and revenue, allowing it to pursue its growth strategy and product development.

The group ranks among the biggest hotel operators in the Kingdom with 37 hotels and more than 18,000 rooms. IHG is planning to establish 23 hotels across the Kingdom. It is also in talks with the Tourism Development Fund and the tourism ministry to set up more hotels in Saudi Arabia, Mattar added.

IHG will have presence in NEOM, The Red Sea Project and Diriyah and will add more keys in Riyadh, Jeddah and the Eastern Province.

According to the tourism strategy, the main focus will be on remote areas, which are in need of more hotel rooms, such as Taif, Umluj, Al-Qassim, Hail, Abha and Al-Baha. Moreover, new trademarks will be introduced in new sites across the Kingdom, Mattar explained.

The tourism and hospitality sector was the most hit by the COVID-19 pandemic. The group faced a challenge to provide an appropriate number of rooms to fulfill the government demand, in light of the number of Saudis returning to the Kingdom due to the pandemic, Mattar added.

Reservations at the group’s hotels are on the rise during the fourth quarter of the year, especially in November and December. The events organized during this period will attract more tourists from the region and the globe, Mattar concluded.