- Saudi Arabia leads the Middle East in hotel expansion with 110,000 rooms, accounting for about 50% of the region's development pipeline.
- The hotel development projects are concentrated in key areas including Riyadh, Makkah, Madinah, Diriyah, Neom, and the Red Sea.
- A broader $90 billion development wave across the Gulf Cooperation Council and North Africa is expected to increase regional hotel supply by 27%.
- Over 55% of the upcoming hotels are slated for delivery between now and 2030, with 88,000 rooms currently under construction and 25,000 in planning stages.
- Saudi Arabia aims to attract 150 million visitors by 2030, exceeding its original goal of 100 million, highlighting the growing tourism sector's demand for accommodation.
- The Ministry of Tourism plans to increase hotel rooms to over 550,000 by 2030, with tourism expected to contribute 10% to the GDP.
RIYADH: Saudi Arabia is driving hotel expansion across the Middle East, with 110,000 rooms under development — about half of the region’s hotel pipeline — as the Kingdom ramps up investment in tourism destinations and hospitality infrastructure.
According to an analysis by the global hospitality consultancy HVS, the pipeline spans Riyadh, Makkah, Madinah, as well as Diriyah, Neom, the Red Sea and Amaala, covering a range of projects linked to the Kingdom’s expanding tourism sector.
Saudi Arabia’s pipeline forms part of a broader $90 billion hotel development wave across the Gulf Cooperation Council and North Africa, which is expected to add about 200,000 rooms and increase existing regional supply by 27 percent, HVS said.
With around 88,000 rooms currently under construction and another 25,000 in the final planning stages, more than 55 percent of upcoming hotels in the region are set to be delivered between now and 2030.
Hala Matar Choufany, president, Middle East, Africa and South Asia at HVS, said: “The hotel development pipeline across the GCC and North Africa remains one of the most significant globally, reflecting continued investor confidence in the long-term fundamentals of the region's tourism and hospitality sectors.”
She added: “The region’s investment in hotel expansion underscores not only the scale of development, but also the depth of capital that continues to back the region's tourism ambitions.”
Tourism drives demand
Saudi Arabia’s expanding tourism sector is creating demand for additional accommodation as the Kingdom develops new destinations and hospitality infrastructure.
The 2025 Vision 2030 annual report said Saudi Arabia had exceeded its initial target of 100 million visitors ahead of schedule, prompting the Kingdom to raise its ambition to 150 million visitors by 2030
The Ministry of Tourism aims to increase the number of hotel rooms to more than 550,000 by 2030, while tourism’s contribution to gross domestic product is targeted at 10 percent.
Saudi Arabia recorded about SR304 billion ($81 billion) in tourism spending in 2025, according to the 2025 Vision 2030 report and Ministry of Tourism data.
Investment models evolve
“In Saudi Arabia especially, large-scale destination developments are being underpinned by government-backed investment vehicles and strategic public-private partnerships, while developers across the wider region are diversifying revenue streams through branded residences and mixed-use components,” said Choufany.
The pipeline highlights the increasing role of government-backed development vehicles and private-sector investors in expanding the region’s tourism capacity, while mixed-use projects and branded residences provide developers with additional revenue streams.
