Data from STR, a hotel data firm, has shown that Riyadh hotels experienced a surge in February, with the highest occupancy rates recorded for any February since 2008. Occupancies reached 75.5 percent for the month, with three consecutive days at 90 percent occupancy at the beginning of the month. In addition, compared to 2019 levels, ADR and RevPAR also increased, with ADR up 23.4 percent to SAR801.46 and RevPAR up 65.3 percent to SAR605.06.
Despite the positive growth, the high pricing of Saudi hotels has come under scrutiny. Many young Saudis cannot afford to stay in high-end hotels, with 73 percent of Gen Z Saudis citing high costs as a significant barrier to travel within the country, according to a report from Knight Frank. The report highlights the need for more budget-friendly options in the country, as Saudi nationals frequently travel within the Kingdom, but are deterred by the high costs. The survey conducted by Knight Frank, in partnership with YouGov, involved 498 Saudi households.