Action Hotels recently announced the addition of a three-star hotel in Riyadh.
The 130-room property will be located in the Olaya district. The hotel will be developed by conversion of an existing office building in just over 12 months.
According to Alain Debare, CEO, Action Hotels, there is a limited supply of quality, internationally-branded economy and midscale hotels in Saudi Arabia. “There is great potential for the Group in the Kingdom, and Riyadh in particular. Although the Riyadh hotel market is a mature market, there is considerable demand for mid-economy branded hotels from corporate segment, yet this segment is currently under supplied,” he added.
The conversion project is scheduled to open in Q2 2016, at an expected project cost of approximately US$ eight million. The Group has also signed a 20-year operating lease agreement, and is finalising terms of a long-term management agreement with a leading hotel brand, with an announcement expected shortly.
Addition of the new hotel brings the development pipeline from Action Hotels to a total of nine hotels with 1,514 rooms and a combined operating hotels and committed pipeline of 3,002 rooms.