Extending its commitment to the Saudi Arabian hospitality market, Coral Hotels & Resorts has entered in to an agreement with Al Fanar Group to manage the group’s new hotel in Jeddah, the Red Sea city.

Currently under construction, the property located at the prestigious Jeddah Corniche will open early in 2011. Coral Jeddah will feature 54 rooms, eight suites and eight studio apartments as well as two restaurants, roof-top cafe and three function rooms, health club and a pool.

Coral’s massive expansion in Jeddah is the result of a development strategy that will see the group spread its presence throughout Saudi Arabia, where it currently operates several hotels including two in Riyadh and one each in Al Khobar and Al Ahsa. The group also signed management contracts for two additional Coral hotels in Saudi Arabia at the recent Arabian Travel market.

According to Michel Noblet, President & CEO of HMH – Hospitality Management Holdings, “The government investment in infrastructure has given a tremendous boost to domestic tourism as well as Haj and Umrah travel. In addition, increasing business travel has opened up extensive opportunities across the entire spectrum of the hospitality sector.

“As the gateway city to Makkah, Jeddah benefits from pilgrims whose numbers are expected to reach eight million by next year,” he said. “A 20-year redevelopment programme is underway that aims to revitalise the old city centre as well as take in mega projects such as the King Abdullah Economic City and Jeddah Hills and the expansion of Jeddah International Airport to handle 30 million passengers annually.

“All of this means there will be a sustained requirement for all levels of hotel accommodation from the deluxe to the value brands.”

Cited as one of the ‘hotspots’ for hotel development at the recent Arab Hotel Investment Conference, Saudi Arabia has prioritised domestic tourism as a growth sector, but is also opening up in a limited way to international tourism as well as facilitating business through the easing of visa requirements.

Mr Abdoul Aziz Al Shabrgi, General Manager – owner of Al Fanar Group said he was delighted to secure the management expertise of Coral Hotels & Resorts to operate the Coral Jeddah: “With Coral, we can expect international standards twinned with an understanding of the local culture that will establish the Coral Jeddah as a boutique hotel that can cater to the needs and expectations of both business and leisure visitors,” he said.

For more information about Coral Hotels & Resorts visit: www.coral-international.com