Rotana expands into Saudi Arabia’s secondary and tertiary cities

Rotana Hotels CEO Philip Barnes outlined plans for nine additional hotels, reflecting a strategic shift toward less explored locations in the Kingdom. AN photo
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DUBAI: Rotana Hotels is set to expand its footprint in Saudi Arabia by establishing hotels in secondary and tertiary cities over the next two years.

CEO Philip Barnes outlined plans for nine additional hotels, reflecting a strategic shift toward less explored locations in the Kingdom.

“We’re looking to grow by probably another nine hotels over the course of the next two years,” Barnes shared with Arab News at the Future Hospitality Summit in Dubai, emphasizing the brand’s commitment to smaller, developing cities.

Barnes highlighted recent openings, including an Edge hotel in Riyadh and a new property in Madinah, but noted the focus is now on expanding into areas often overlooked by international chains. “We’re moving into what I would consider to be more tertiary and secondary cities within Saudi, which for us is tremendous because that’s what we want to be — a strong regional brand,” he explained.

While the specific locations of the new hotels are not yet disclosed, discussions with various developers and owners are in progress. This local-centric expansion aligns with Rotana’s deep regional roots. “We were born in the region. We’ve grown up in the region. We are the region,” Barnes stated, emphasizing the brand’s understanding of local culture as a key advantage.

“There’s a familiarity with owners and developers. We come in with a perspective unique to the region, not influenced by American, British, or French models,” he added. This cultural awareness is crucial for developers, as Rotana’s insights into local markets enhance their comfort level. “We know how things work in the region, and that’s become more important for a lot of developers,” Barnes noted.

As Saudi Arabia positions itself on the global tourism map, Barnes sees the country rapidly emerging as a key player in the hospitality sector. He reflected on the improvements in accessibility and infrastructure since his earlier experiences in the Kingdom. “Back in 2019, I had to go to the embassy to get a visa. Now, the visa is automatically online. The whole transition is becoming easier,” he remarked.

Saudi Arabia is making strides to establish itself as a world-class destination, boasting a rich cultural heritage, which is vital for attracting international visitors. Barnes shared his impressions of Riyadh’s transformation: “Driving down the street at 10 at night in Riyadh, I could have been anywhere in the world. The streets were packed, the restaurants were busy. There was life, energy, and passion.”

This vibrancy, combined with a strategic push to showcase cultural heritage, is driving investment and tourism. “People are getting a lot more comfortable with Saudi. It has the history, it has the culture. As Saudi (Arabia) puts itself more on the world stage, you’re going to see more of that,” he explained.

Barnes compared Saudi Arabia’s growth to that of successful tourism destinations in the past, noting a similar pattern emerging in the Middle East. “People are looking for new and interesting places that have culture and history, and Saudi has all of that to offer,” he remarked, predicting that Saudi (Arabia) will make a significant impact on the global tourism landscape in the next few years.

Looking forward, Barnes acknowledged the increasing role of technology and artificial intelligence in hospitality, while underscoring the importance of human interaction.

“AI is becoming more prominent. We’ve appointed a CIO who is well-versed in AI and is looking at how we can enhance the guest experience,” he noted, highlighting the use of AI for streamlining processes like booking and customer service. However, he stressed that technology cannot replace the personal touch.

“The hospitality industry is about people. AI can’t replace the doorman who gives you a warm smile and greets you by name. It’s the human touch that makes you feel special, and AI won’t do that,” Barnes concluded.

As Rotana advances its expansion plans in Saudi Arabia, the company’s deep understanding of local markets and commitment to guest experience positions it well to benefit from the country’s tourism boom, playing a central role in the rapidly growing hospitality sector.