The Saudi hotel industry’s business cycle is witnessing a “temporary downturn” amid higher supply and weak demand, Dur Hospitality’s chief executive officer, Badr Al Badr, told Al-Arabiya TV on Thursday.
The slowdown will continue for a short time, Al Badr said, expecting improved demand in the local hotel sector within the next three to four years, in line with the Saudi Vision 2030 and its positive impact on the Kingdom’s economy.
Dur is benefiting from lower contracting prices at present, when construction activities become more attractive. The company will offer new products in line with growing demand.
“Dur maintains profitability and has a portfolio of budget hotels under development in Jubail, Yanbu and Hufuf. It is also working on expanding an existing hotel in Tabuk,” Al Badr said.
The hospitality firm will secure bank loans to finance its projects going forward, he added.
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