Arab News, Saturday, Jan 23, 2021 | Jamadi Al Thani
10, 1442
German startup to help Saudi hotels utilize empty spaces
Saudi Arabia: A German start-up established during the
coronavirus disease (COVID-19) pandemic to help hotels overcome a slump in
occupancy rates is now working in Saudi Arabia.
NeuSpace aims to assist operators in coming up with new ways to generate revenue
from their empty spaces.
Anne Schaeflein, a co-founder of the Dusseldorf-based company, told Arab News:
“For hotel properties still in the completion phase, we feel it is best to
evaluate the perspective, and to diversify pre-opening.
“To be empathic to the existing (or planned) infrastructure and environment of
the location, we run a feasibility study and look at how the space could be best
used from an ROI (return on investment) as well as community perspective.
Turning function spaces into day nurseries, delis, and bakeries,” she said.
According to the company’s website, it aims to address the needs of hotel
investors, operators, and the wider community surrounding the property.
“We deliver quick solutions to retain some of the hospitality jobs, and add
others, and offer attractive living space for communities, all within one to
four months, depending on the individual projects,” the company said.
A report in November by global hotel data analysis company, STR, found that the
average occupancy rate in Saudi Arabia was 34.7 percent, down 38.7 percent on
the previous year. As a result, the average revenue per available room fell 35.5
percent year-on-year to SR172.70 ($46.05).
Looking to the future, real estate consultancy firm, Colliers International, has
forecast that average occupancy rates in Riyadh and Alkhobar will be 55 percent,
51 percent in Jeddah and Madinah, and 37 percent in Makkah.
On innovative solutions, Schaeflein said the startup’s concept was formed around
the key pillars of value preservation, creating new housing space, and
innovative housing concepts.
She pointed out that the company looked at how areas such as roof gardens or
social spaces could be used by the wider community, or how pools and spas not
being used by guests could be utilized by local residents.
NeuSpace also studies how back-office services and facilities could be offered
to residents to better utilize staffing levels. This could include offering
dog-minding services, turning rooms into office or retail areas, or renting out
restaurant and entertainment spaces when footfall was low.