Saudi Press

Saudi Arabia and the world
Thursday, Jul 03, 2025

More than 300k hotel rooms to be added in Saudi Arabia by 2030

More than 300k hotel rooms to be added in Saudi Arabia by 2030

More than $1 trillion worth of real estate and infrastructure projects, including 315,000 hotel rooms, are under development or in the pipeline in Saudi Arabia, according to industry experts speaking ahead of the upcoming Future Hospitality Summit Saudi Arabia to be held in Riyadh from May 7 to 9.
The number of hotel keys is likely to almost double to around 200,000 in the next four to five years, with at least 50 percent of the proposed supply becoming operational by 2028, with some existing properties exiting from the market to make way for new hotels and resorts.

Turab Saleem, head of tourism and hospitality at Knight Frank, said: “The Saudi government’s strategy includes attracting 100 million visitors by 2030, and that means creating and delivering first-class gateways and developments, such as the $500 billion NEOM. The $1 trillion projects already underway represent just one-third of the total spending plan, reinforcing the country’s aggressive plan to deliver world-class infrastructure, hospitality, tourism and residential facilities to meet the targets set out in Vision 2030.”

“The outlook for hospitality investment in the Kingdom looks promising, with hotel and tourism development not only focused on the major cities of Riyadh and Jeddah, but spreading quickly to other parts of the country, too. Our analysis shows that the delivery of all planned hotel rooms — which cover the luxury, mid-market and serviced apartment sectors — will cost around $110 billion.”

Echoing similar views, HVS, a leading global consultancy focusing on the hospitality sector, said the government continues to make significant strides in facilitating the growth of different sectors across the country, with notable investments in the hospitality and tourism space.

Hala Matar Choufany, president – Middle East, Africa and South Asia at HVS, said: “The surge in tourism and arrivals into KSA over the last 18 months alone — largely the result of legislation changes and visa facilitation — is a testament to the country’s growing allure. Interestingly, this uptick is not confined to established destinations and sectors such as commercial and religious tourism. ‘Bleisure’ and leisure tourism are equally on the rise, with secondary cities welcoming new visitors from far and wide. As the country continues to diversify its offering, the outlook looks positive, and, while it is early days in terms of planning and future investment, the hospitality market and investment opportunities are significant.”

Knight Frank’s data research on the Kingdom’s hotels outside of the giga-projects shows that there are currently 129,000 hotel and serviced apartment keys in the country. By 2030, that figure will have grown by more than 60 percent to 212,000 keys in 5-star, 4-star, 3-star and under, and serviced apartment sectors, with 4-star properties accounting for almost half of the total development cost of $21.3 billion. Meanwhile, the Kingdom’s giga-projects represent nearly 73 percent of the hotel supply pipeline, with a 62 percent surge in the number of 4- and 5-star hotel rooms by the end of the decade.

And Saudi Arabia’s tourism expansion is not limited to land-based destinations and attractions. The cruise industry, which is set to create up to 50,000 jobs in the country, is expected to bring in 1.5 million visitors annually within the next five years, according to the Public Investment Fund.

Turab Saleem said: “The herculean, $110 billion task of transforming Saudi Arabia’s hospitality landscape goes well beyond the delivery of extra hotel room keys, and care and attention must be taken to launch the correct quantum of product in the right locations.”

HVS anticipates that franchises and lease agreements are set to become a new trend in the Saudi hospitality market.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Emirates Airline Expands Market Share with New $20 Million Campaign
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
×