Business Plan Sahara Hotel - Alula (Saudi Arabia)

Abstract

The Saudi Arabian hospitality industry is experiencing rapid growth, fueled by the government's Vision 2030 initiative to diversify the economy and attract more tourists. AlUla, a UNESCO World Heritage Site, stands out as a prominent destination within this strategy. Currently, AlUla faces a shortage of hotel options, offering a prime opportunity for new market entrants. The Royal Commission for AlUla (RCU) is investing in infrastructure and heritage preservation, making AlUla an appealing location for hotel development. Our project seeks to benefit from the RCU's debt financing initiative, which offers debt with favourable terms as part of the tourism development plan, fostering economic growth in AlUla. The Sahara Hotel, prioritising sustainability, is in alignment with the values of the Royal Commission for AlUla (RCU). It caters to adventurous travellers, fulfilling a distinct market demand. With 106 rooms, it will be located in the Alraya district, occupying a space of 4,307.5 square metres in the city centre of Alula. Funded by a Saudi sector and located in Saudi Arabia, all financial figures will be in the Saudi currency (Saudi Arabian Riyal: SAR). The estimated project cost is 92,426,471 SAR. Anticipating first-year revenues of 20,141,280 SAR, we project a nine-year recovery period, aiming for a 25% return on profits.