The KSA hospitality market experienced a challenging year in 2019 compared to previous years. Increasing supply and competition continued to put pressure on Average Daily Rates and occupancy levels across key cities. For example Riyadh market performance is average occupancy levels in Riyadh saw a 5% increase in the first half of 2019 compared to the same period last year. However, increasing supply and competition led to a reduction in Average Daily Rates (ADR) by 10% over the same period, which resulted in a decline in Revenue Per Available Room (RevPAR) by 6%. The hotel market in Riyadh saw the delivery of approximately 850 new keys in the first half of 2019, raising the existing stock to 14,874 keys. This included major openings such as Marriott Hotel and Marriott Executive Apartments Riyadh Diplomatic Quarter. Jeddah market performance is Jeddah’s hospitality market experienced a challenging year in 2019 compared to previous years. While occupancy levels remained stable, increasing supply and competition continued to drive reductions in ADR and consequently RevPAR which saw a reduction of approximately 11% in the first half of 2019, compared to the same period last year.