Asfar has opened Qamra Al Jabal resort in Al-Baha, making it the first project in its investment portfolio to move into actual operations.

To me, the significance of the news lies not only in the opening of a new resort, but in the investment’s transition from a phase in which money is spent on development and construction to an entirely different phase: the stage at which the asset is expected to begin generating revenue.

This is where the project’s real financial test begins.

From an Asset Under Development to an Operating Asset

The resort was developed on an area of more than 21,000 square meters. Its first phase includes 30 mountain rooms and suites, with plans to add 70 rooms and suites in the second phase, bringing the planned capacity to 100 rooms and suites.

During the development phase, the focus is on construction and fit-out costs and investment in the asset. But once operations begin, the figures that need to be tracked change.

There are now rooms, occupancy rates, accommodation prices, and revenue, alongside operating expenses, salaries, maintenance, and marketing costs.

In other words, the question is no longer: How much was invested in the project? It has become: What will this investment generate?

Just 30 Rooms—So Why Expand to 100?

The decision to develop the project in phases also caught my attention.

Rather than operating 100 rooms all at once, the first phase begins with 30 rooms, followed by plans to add another 70. In my view, this gives the project an opportunity to begin operations and measure actual demand before reaching full capacity.

Demand already exists: Al-Baha receives more than one million visitors annually, while Ministry of Tourism forecasts indicate that the region’s hotel capacity will rise from approximately 370 rooms currently to more than 1,370 rooms by the end of 2029.

However, an increase in visitor numbers and rooms alone does not guarantee financial success, because greater supply also means more competition among hospitality establishments.

The Project’s Value Goes Beyond Room Revenue

There is another important aspect to “Qamra.” The project does not rely solely on accommodation; it combines hospitality with tourism experiences and activities, while also benefiting from local products and crops and collaborating with the local community.

This means the project’s economic value may extend well beyond room revenue through spending on activities, restaurants, services, and local products, as well as through jobs and tourism-related supply chains.

Here, investment in a single resort becomes part of a larger economic activity within the region.

What Does the Accountant See?

A visitor may see a new mountain resort in Al-Baha, while an accountant looks at occupancy rate, average revenue per room, operating costs, cash flow, and return on invested capital.

In my view, the opening of “Qamra” does not mark the end of the investment phase, but rather the beginning of the phase through which its success can be measured in real terms.

A tourism asset may be distinguished by its location and design, but its financial value emerges when it can convert that distinction into sustained demand, revenue, and cash flow.

Therefore, the more important question may not be: How much did it cost to build the destination? but rather: How much value can this destination generate once it begins welcoming visitors?