Saudi Arabia on Accor’s radar for expansion
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Accor Middle East is strengthening its presence in the Kingdom of Saudi Arabia (KSA). The Group has announced that it has signed a management contract to develop a mid-scale hotel in Jizan. This news was post the signing agreement with Munshaat Real Estate Projects Company to launch the 1315-room Zamzam Pullman Makkah, formerly Zamzam Grand, at the recent Arabian Travel Market.
Accor has an objective to operate a network of 15 to 20 Ibis hotels in the Kingdom. Strengthening its position, it will be the first international operator to introduce an economy brand in the Kingdom. It will debut its 176-room ibis hotel in Riyadh in December 2012 and its 196-room ibis Yanbu in 2013.
In addition, three hotels are currently under construction or at design phase and will bring the KSA network to a total of 17 hotels at horizon 2015: Ibis Jeddah Malik Road by 2014, Adagio Jeddah Malik Road by 2014 and Novotel Jizan by 2015.
Christophe Landais, managing director Accor Middle East, said: “The Kingdom constitutes a strategic base for Accor to develop its brands. The tourism industry in KSA rapidly expands and our development plans reflect growing demand for good hotels in this market.”
Accor currently operates 12 hotels in KSA representing 3,346 rooms in six different cities under the brands Sofitel, Pullman, Novotel and Mercure. Some of the flagship properties can be seen for example in Riyadh with Novotel Al Anoud or in Al Khobar with Sofitel the Corniche.
Both Zamzam Pullman Makkah and the 253-room Pullman Al Hamra, formerly Sofitel Al Hamra in Jeddah, will undergo an extensive renovation. The renovation will start with public areas and restaurants in late 2012 and will continue with the full refurbishment of the suites and rooms.
“We have two Pullman properties under development in the UAE and Qatar and we are currently in discussion for potential Pullman developments in the Kingdom with the upscale Pullman product offering meeting both investors’ and end users’ requirements,” added Landais.
Accor will also focus on the Holy Cities of Makkah and Madinah where religious tourism is growing. Makkah will welcome over 10 million pilgrims per year and this number is expected to rise significantly in the upcoming years, due to the improvement of local infrastructures such as Jeddah Airport’s renovation which will have a capacity to service 30 million passengers per year upon completion.