Designs Group, Warwick enter Saudi hotels deal

Saudi-based Designs Group, a pioneer in providing integrated hotel solutions as well as construction and management services, has announced its strategic alliance with Warwick Hotels & Resorts (WHR) for the management of new properties featuring 1,000 rooms in the kingdom.

The agreement will come into effect from the beginning of 2019, said a senior company official on the sidelines of The Hotel Show in Dubai, UAE.

Group CEO Engineer Mohammad Al Nadi said: "We are very pleased to collaborate with WHR for our upcoming projects in Saudi Arabia. These hotels are situated in prime locations and are being developed to offer world-class facilities."

"We are confident that WHR will add great value to the projects with its vast global and regional experience and expertise. Our business strategy is in line with Saudi Vision 2030 that recognises the role religious tourism can play in diversifying the economy and is, therefore, fuelling the demand for quality hotels," he stated.

"The market is currently undersupplied in terms of



hotels and projected to show strong growth in future that we are well placed to capitalise on," he added.

With the expected completion of the Holy Mosque and various infrastructure developments coupled with the anticipated recovery in the feeder market’s economies in the mid to long-term, the kingdom aims to welcome 30 million pilgrims by 2030.

WHR Senior VP and CEO for the Middle East and North Africa (Mena) Jamal Serhan said Saudi Arabia was an extremely significant market for the group with a growing demand for hotels.

Religious pilgrims currently contribute 2-3 per cent of Saudi’s GDP. Therefore, there are plans to roughly double the capacity to accommodate both Umrah and Hajj visitors to around 15 million and five million respectively by 2020.

"We are delighted to expand our footprint in the kingdom where we already have seven hotels and are very excited to penetrate new destinations with a reputable partner like Designs Group. We are truly grateful to them for having given us this fantastic opportunity," he added.