almatar & Nazeel announce strategic alliance to reshape Saudi Tourism market

almatar and Nazeel have announced the launch of a strategic alliance to create a system of hotel operating standards supported by technology and business intelligence, which will contribute towards:

• Upgrading the level of services in the hotel apartments sector by applying the highest international hotel standards.

• Increase the capacity of the hospitality sector under a unified online robust system, up to 250,000 hotel rooms for furnished apartments in Saudi Arabia.

• Building an integrated business model to efficiently link a unified system for furnished apartments with international reservation platforms & OTAs globally.

• Presenting the project in different widely spoken international languages, which facilitates targeting foreign tourists visiting KSA aligned with the Saudi government efforts to offer unprecedented facilities to welcome its valued guests through issuing direct entry visa service through its airports for 48 countries.

This alliance is expected to form the largest Saudi hotel chain in terms of the number of hotel rooms in the Middle East, as well as becoming the largest hotel operator, thus enhancing the digital transformation of Saudi Arabia's tourism sector.

Recently, KSA-based P2P rental platform Gathern, which enables people to list and rent vacation rentals, closed a $6M Series A investment round. With tourism being a key focus area of the Saudi government, and startups such as Gathern acting as facilitators to boost the Kingdom's image as a vacation destination, this announcement comes at a very opportune moment.

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Mr. Aimen Baslamah, CEO of almatar, commented "Although the global tourism sector has been severely affected by COVID-19 pandemic, but we strongly believe that it will witness a huge breakthrough in the coming years, accordingly we did not hesitate to fully support this strategic alliance. At the national level, solving the problem of securing required beds, especially during the prime seasons and various occasions taking place in different cities and governorates of the Kingdom will become easy, and raising the operating rates in hotel apartments and thus increasing their revenues and income is a foregone conclusion. Moreover, catering to the needs of the tourist, visitor, or companies interested in visiting, exploring our beloved homeland and staying for long periods in it will become easier than before, at transparent prices within criteria that meet their desires”. 

Mr. Faisal AlRajhi, VP of almatar highlighted “This alliance offers an unprecedented opportunity for a lot of furnished apartments to be a part of an international reservation system, thus enabling them to attract different kinds of customers other than relying only on walk-in ones. This is vital for the Tourism sector since the number of furnished apartments is nearly triple the number of hotel rooms in KSA, which will eventually reflect in accommodation rates increase and will elevate customer experience”.

Mr. Abdullah Al-Youssef, CEO of Alia, mentioned "More than 250,000 rooms are currently linked to NAZEEL project, and through this alliance, the rates of guest accommodation in these rooms will substantially increase to break record numbers during the first year of this alliance. after it reached more than 8 million guests who were accommodated through NAZEEL. The extended negotiations with almatar, which lasted for several months, aimed to unify the future vision in alignment with the current noticeable expansion and openness in the Kingdom at tourism and economic level. The main role of this alliance iis building a strategic partnership with the public sector represented by the Ministry of Tourism and its affiliates."

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