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.

RIYADH: Saudi Arabia’s Tadawul All Share Index closed at 12,226.10 points on Monday, losing 45.67 points, or 0.37 percent.      

The parallel market Nomu also shed 167.72 points, or 0.65 percent, to conclude at 25,442.94.       

The MSCI Tadawul 30 Index also fell 4.15 points to finish at 1,528.05.     

The main index posted a trading value of SR8.7 billion ($2.33 billion), with 81 stocks advancing and 149 declining. Nomu reported a trade volume of SR52.4 million.    

Despite TASI’s slowdown, Al-Baha Investment and Development Co. saw a growth in its stock as its share price surged 10 percent to SR0.22. CHUBB Arabia Cooperative Insurance Co. followed next with its share price jumping 5.39 percent to close at SR42.05.    

Tourism Enterprise Co. was also among the top performers, climbing 5.21 percent to SR1.01. Salama Cooperative Insurance Co. and Saudi Arabian Mining Co. increased 4.26 and 3.83 percent to SR28.15 and SR48.80, respectively.    

Conversely, Bupa Arabia for Cooperative Insurance Co. recorded the most significant dip, declining 5.82 percent to SR207.20.    

Saudi Fisheries Co. and Savola Group also experienced setbacks, with their shares dropping to SR29.15 and SR27, reflecting declines of 4.43 and 3.74 percent, respectively. Maharah Human Resources Co. and Saudi Kingdom Holding Co. also reported losses.   

Nomu’s top performer was Natural Gas Distribution Co., which saw a 9.71 percent jump to SR48. 

Edarat Communication and Information Technology Co. and Nofoth Food Products Co. also recorded notable gains, with their shares closing at SR515 and SR18.54, marking an increase of 7.29 and 5.94 percent, respectively. Future Care Trading Co. and Banan Real Estate Co. also fared well.    

On Nomu, Alqemam for Computer Systems Co. was the worst performer, declining by 9.52 percent to SR95. Other underperformers included Meyar Co. and National Building and Marketing Co., whose share prices dropped 7.46 percent and 5.83 percent to SR62 and SR210, respectively.    

Taqat Mineral Trading Co. and MOBI Industry Co. declined during the day to settle at SR11.20 and SR11.28, respectively.