Market Overview:

Jazan is a small market full of opportunities for growth. However, due to unrest at the South of the border in Yemen, business has dropped since January 2015. 

Corporate demand is the main driver of the hospitality industry in Jazan. The market is expected to recover once the unrest is over. 

The market is in need of quality branded establishments. As of Q3 2015, a total of 5 properties are expected to enter the market, introducing an additional, 1,003 keys within the next 4 years. 

Accor is the operator entering with the largest amount of supply, and this across three brands – a 4 star Novotel, a 3-star Ibis Hotel and an Upper-Midscale Adagio Aparthotel. 

Future Developments:

Ambitious developments such as the new Jazan airport and the Economic City will be crucial to the growth of Jazan as a transportation and logistics hub. 

For the time being, these projects are on hold as the Saudi government is reprioritising budget allocation. 

Outlook:

The area next to the Port, along with the new large scale developments in the North, all represent areas of opportunity for corporate hotels and midscale serviced apartments. 

Given the current situation at the south of the border, developers must consider a long-term view when investing in Jazan’s hospitality sector. 

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