UAE-based Silkhaus to Enter Saudi Arabia’s Short-Term Rental Market
Silkhaus, a property technology company based in the UAE, is gearing up to make a significant entry into Saudi Arabia’s hospitality sector. Founded in 2021, the company aims to bring its unique approach to the short-term rental space, aiming to transform it into a real estate asset class and an accommodation experience across emerging markets.
In an interview with Arab News, Sabine El-Najjar, founding general manager in Saudi Arabia for Silkhaus, spoke about the company’s mission and strategy. El-Najjar explained that Silkhaus’s approach allows landlords to secure 20 to 40 percent higher income than traditional rental models, providing them with the flexibility to adjust prices to align with seasonal and neighborhood demand. The company oversees every aspect of property management, from furnishing to maintenance and daily operations, ensuring a hassle-free experience for guests.
The company’s expansion into Saudi Arabia aligns with the Kingdom’s significant investment in tourism, aiming to attract over 100 million local and international tourists by 2030. According to El-Najjar, Silkhaus aims to be among the top three operators in every city it operates in. The company’s strategic expansion into the Kingdom also aligns with the growing appetite for landlords to monetize their assets.
Silkhaus is looking to bring the best experience to its corporate and individual customers and differentiate itself from other players in the sector. The company is already in advanced conversations with institutional investors who own large property portfolios and aims to further solidify its expansion strategy by developing corporate partnerships. El-Najjar stated that the company’s metrics are set to see a significant uptick with the Saudi expansion and will create opportunities for numerous young local talent.
The company aims to completely revolutionize the short-term rental space in the region with the Kingdom as a benchmark for excellence. El-Najjar believes that the strong economy and global appeal of Saudi Arabia highlight the need for flexible short-term accommodations. Silkhaus also aims to have a positive impact on other verticals in the hospitality sector like food and beverage, facility management, and personal services.
Technology plays a critical role in Silkhaus’s approach, and the company’s internal product team comprises software engineers and developers with extensive sector-specific experience. Silkhaus is also committed to enhancing the customer journey every step of the way by adding services available to guests beyond accommodation, including food and beverage offerings through partnerships with third parties, personal services, and concierge services.
The company managed to sustain a revenue-sharing business model with its landlords, enabling it to align its goals with its property owners. To maintain this equilibrium, Silkhaus utilizes data-driven insights to adapt to price fluctuations, monitor occupancy data, and make accurate revenue projections.
Silkhaus currently manages over $120 million worth of real estate and is well-capitalized to ensure a successful expansion strategy after raising $7.75 million in its seed round last year. The company is focused on building its foundations in Saudi Arabia, with El-Najjar’s appointment as founding GM in the Kingdom marking the beginning of its Saudi expansion.
