The local Dur Hospitality Company has purchased a SR43.4m ($11.6m) plot of land on Al-Madina Road in Jeddah.

The 3,850-square-metre area will be developed into a hotel and hotel apartments, according to a statement released on the Saudi Stock Exchange (Tadawul).

The statement went on to say the project “will be financed from the company’s own resources”.

Jeddah hotels witnessed a 6.5 percentage point increase in occupancy to 80.9 per cent in July. This was slightly lower than the same period last year.

Average room and revenue per average room fell slightly.

“Overall, Jeddah remains a very strong hospitality market, with healthy occupancy levels and the third-highest room rate in the region after Dubai and Riyadh, which indicates the hospitality market in Jeddah is geared towards high-end hotels,” says a report published by US real estate consultancy JLL.