Daily Newsletter

30 August 2023

Daily Newsletter

30 August 2023

Sagma expands into Saudi Arabia to benefit from expanding hotel industry

The luxury guest amenities distributor for the GCC hotel industry has opened a warehouse and office in Jeddah.

Upasana Mukherjee August 29 2023

Sagma, a luxury guest amenities distributor in the Gulf Cooperation Council (GCC), has announced its expansion into Saudi Arabia, as reported by Hoteliermiddleeast.com.

This expansion is expected to tap the growing hotel industry in the country.

The company has more than ten years of experience distributing reputed brands such as Ferragamo, Hermès, Lanvin, Bvlgari and Oscar de la Renta.

Sagma plans to now establish itself as the sole distributor for premium and ultra-premium offerings in the hotel sector across the GCC and Saudi Arabia (KSA).

The company has opened a warehouse and office in Jeddah, Saudi Arabia, to enable local stocking and quick three-day deliveries to hotels.

This move will improve distribution efficiency and offer seamless local invoicing, thereby ensuring an easy experience for its hotel clients.

The company's move is in line with the country’s fast-developing tourism industry, which is witnessing the development of major projects such as in AlUla and the Red Sea region.

The projects highlight the growth of the hospitality sector and present varied opportunities for Sagma to contribute to meeting the growing industry demands.

Sagma also aims to exhibit its offerings and establish prospective partnerships during the Hotel Show in Riyadh, which is expected in September.

The event is expected to offer the company an opportunity to engage with key stakeholders in the hospitality industry and become a go-to partner for luxury offerings, according to Sagma.

Demand for upscale and luxurious products has been rising steadily in the travel and tourism sector

The increased need for privacy, a greater focus on health and wellbeing, a desire to tick off ‘bucket list’ experiences, the tendency to take longer trips, the focus on eco-tourism, and an increase in millionaires means the theme of premiumization will continue to grow in importance. The travel industry will experience a surge in demand for higher-end and customized offerings as experiential consumption keeps growing. While premiumization attracts only a small number of global travelers, it is a valuable revenue stream for companies as it is unlikely to be impacted by external factors like economic downturns.

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