Marriott expects $2 billion investment in Saudi Arabia
Marriott International is hoping to attract as much as $2 billion investment in Saudi Arabia by doubling its number of hotel rooms in the country over the next four years. According to Alex Kyriakidis, Marriott’s president and managing director for the Middle East and Africa, the company is planning to add 29 hotels in Saudi Arabia, thereby increasing its number of rooms on offer from 6,800 to “about 12,500”. The project is expected to take until 2022.
Marriott’s share price is up 56% over the past 12 months
SOURCE: Yahoo Finance
Marriott’s strategy fits in with the kingdom’s plans regarding tourism. Saudi Arabia is hoping to boost domestic and international tourism and diversify its economy away from oil exports. The country hopes to see $46.6 billion in tourist spending in 2020 – that’s approaching twice as much as it saw in 2015 ($27.9 billion).
To accomplish this goal, the kingdom plans to develop resorts on a number of islands along the Red Sea coast and create an “entertainment city” to the south of Riyadh. This city will house golf courses, car racing tracks and a theme park.
Mr. Kyriakidis said that the development would cost $2 billion. He overseas the operation of some of Marriott’s top brands in the region, including Marriott, Ritz Carlton, Le Meridien, and Sheraton.
Dominion holds Marriott International in its Global Trends Luxury Fund.
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