Saudi Arabia’s Hotel Construction Surge Triggers Supply Chain Concerns
Photo Credit: Saudi Arabia has the largest hotel construction activity in the Middle East and Africa region. Seera Group
Skift Take
While the booming hotel development pipeline in Saudi Arabia is expected to cause disruptions, the hotel industry sees an opportunity to prioritize ESG goals. Will this construction frenzy lead to a green revolution?
Middle East Travel Roundup
Get the latest news from the Middle East in one easy-to-digest newsletter.The hotel development pipeline is expected to face disruptions in 2024 due to the significant construction volume in Saudi Arabia and a global logistics and supply industry that has yet to fully recover from the effects of Covid-19.
Saudi Arabia has the largest hotel construction activity in the Middle East and Africa region, followed by United Arab Emirates, according to hotel research firm STR. Saudi Arabia topped the regional list with 42,033 hotel rooms in March, followed by United Arab Emirates with 22,324 rooms.
Panelists at the International Hospitality Investment Forum in Berlin last month discussed how the demand for materials in the next 10 to 18 months is projected to create a supply problem. To mitigate delays caused by shortages, procurement companies like FEBC are negotiating advance guarantees with key global accounts, said Alessandro Tedesco, CEO of FEBC. The challenges also present an opportunity for the hotel industry to pursue ESG
