Millennium Hotels & Resorts plans to expand in Saudi Arabia, targeting both major cities and emerging destinations, while enhancing local experiences and sustainability efforts

Millennium Hotels and Resorts is gearing up for significant expansion across Saudi Arabia, aiming to extend its presence beyond major cities like Riyadh and Jeddah. The company’s Chief Operating Officer, William Harley-Fleming, revealed these plans during the Future Hospitality Summit in Dubai. Harley-Fleming emphasized the company’s goal to diversify its portfolio by entering the Saudi resort market and targeting key destinations across the Kingdom.

Millennium already operates the Grand Millennium Hotel in Saudi Arabia but is in negotiations with several property owners to open new locations in various parts of the country. The company is actively exploring opportunities in secondary cities like Tabuk, Jazan, and Hail, which have witnessed substantial development in recent years. These areas, while not traditional tourist hubs are seen as emerging markets with great potential due to ongoing infrastructure improvements and growing interest from tourists and consultants alike.

“We’re not just looking at Riyadh and Jeddah,” Harley-Fleming noted. “We are in discussions with owners to bring our brands to key locations outside of these capitals. We hope to have something in Riyadh very soon, but we are also committed to expanding into other cities within the Kingdom.”

In addition to growing its presence in major cities, Millennium Hotels and Resorts is set to introduce a new Copthorne hotel in Jeddah next year. This will be their second property in the city, following the successful launch of the Millennium Hotel earlier this year. Harley-Fleming explained that this expansion aligns with Saudi Arabia’s broader tourism and hospitality goals, as outlined in Vision 2030.

The COO also highlighted plans to expand the company’s lifestyle-oriented social brand in Saudi Arabia. “We believe there is room for more than just midscale brands,” he said. “We’re seeing opportunities for developing lifestyle hotels in key locations, particularly as Saudi Arabia is flooded with exciting opportunities for tourism and leisure.”

Millennium’s commitment to integrating local culture and sustainability into its operations is central to its Saudi expansion strategy. Harley-Fleming expressed enthusiasm about bringing authentic Saudi experiences to hotel guests, which includes promoting local cuisine, language, and traditions. For instance, hotel lobbies will feature local products like honey and dates sourced from nearby farmers, offering guests a taste of the Kingdom’s rich heritage.

The company is also keen on supporting Saudi Arabia’s Saudization program, which focuses on increasing employment opportunities for local citizens. Harley-Fleming emphasized that hiring more Saudis will not only enhance the authenticity of guest experiences but also contribute to the country’s economic and social goals. This aligns with Millennium’s broader sustainability efforts, which prioritize supporting local businesses and communities.

“We want to ensure that our guests experience the real Saudi Arabia, beyond just its beaches and deserts,” Harley-Fleming said. “By working closely with local owners and businesses, we are able to offer culturally immersive experiences while promoting sustainability and localization in our operations.”

Analysis

Political: Millennium Hotels and Resorts’ expansion into Saudi Arabia highlights the growing significance of the Kingdom’s Vision 2030 initiative, which aims to diversify the economy and reduce dependence on oil revenues. The expansion aligns with Saudi Arabia’s efforts to bolster its tourism sector, which is central to Vision 2030’s objectives. By investing in secondary cities and rural areas, Millennium is directly supporting the government’s push to develop tourism infrastructure outside of major urban centres. This move demonstrates that foreign companies are increasingly viewing Saudi Arabia as a favourable investment environment due to political stability and economic reforms.

The company’s support for the Saudization program also reflects a broader political alignment with Saudi policies that aim to empower local citizens through employment opportunities. Millennium’s commitment to hiring more Saudi workers shows its dedication to being part of the Kingdom’s social and economic transformation. This partnership between foreign businesses and the government could strengthen Saudi Arabia’s image as an attractive destination for international investors.

Social: Millennium’s focus on expanding into regions beyond Riyadh and Jeddah demonstrates a commitment to enhancing the social fabric of Saudi Arabia. The company’s intention to integrate local culture into the guest experience is likely to have a positive impact on societal perceptions of tourism. By promoting local products and traditions, Millennium is helping to preserve Saudi culture while making it more accessible to international visitors.

This move also aligns with the country’s broader societal goals of modernizing without losing its cultural identity. Saudi Arabia’s conservative society is gradually embracing tourism, and Millennium’s localized approach may ease the transition by presenting tourism as a mutually beneficial endeavour that supports local communities.

Economic: From an economic perspective, Millennium Hotels and Resorts’ expansion is a direct response to Saudi Arabia’s rapidly growing tourism industry, which is expected to contribute significantly to the country’s GDP in the coming years. The Kingdom’s hospitality sector is booming, with increased demand for accommodations driven by both business and leisure travellers. Millennium’s decision to expand into secondary cities reflects a keen understanding of the market’s potential beyond major urban centres, signalling confidence in Saudi Arabia’s long-term economic growth.

Moreover, by focusing on local partnerships and sourcing products from nearby businesses, Millennium is contributing to the local economy in a sustainable way. This strategy aligns with Saudi Arabia’s vision of creating a more diversified economy, where non-oil sectors like tourism play a leading role. The company’s efforts to hire locally and source products within the country further reinforce its commitment to supporting the local economy.

In the long term, Millennium’s presence in both major cities and developing regions could help stimulate economic growth in underserved areas, creating new business opportunities and improving infrastructure. The expansion is also likely to attract foreign visitors and investors, boosting Saudi Arabia’s global tourism profile.