Saudi Arabia to develop 362,000 new hotel rooms by 2030 as part of US$110B hospitality expansion- STR

SAUDI ARABIA – Saudi Arabia is set to develop 362,000 hotel rooms by 2030 as part of its US$110 billion hospitality expansion, according to STR, underscoring its commitment to becoming a global tourism hub ahead of the 2025 Future Hospitality Summit (FHS) Saudi Arabia.

Saudi Arabia’s large-scale expansion across infrastructure, real estate, tourism, and hospitality, aligned with Vision 2030, is positioning the Kingdom as a global leader in travel and tourism.

This rapid development is reshaping industry standards, creating new investment opportunities, and enabling stakeholders to contribute to the country’s long-term economic transformation, according to industry experts.

The tourism sector’s strong upward trajectory is evident in the rise of international visitors, which reached 30 million in 2024, up from 27.4 million the previous year.

With a solid investment pipeline, Saudi Arabia is progressing toward its target of attracting 70 million international tourists annually by 2030.

Hospitality analytics firm STR reported that hotel room revenue in Saudi Arabia grew to US$5.6 billion between January and October 2024, reflecting a 3.5% increase from 2023 and a significant 26.5% jump compared to 2019.

Riyadh and Madinah were among the key markets that witnessed notable improvements in occupancy rates and Average Daily Rate (ADR).

Riyadh recorded a 16% rise in ADR over 2023 levels, while Madinah experienced a 5% increase.

Industry analysts described Saudi Arabia’s transformation into a premier tourism destination as remarkable, highlighting the importance of balancing hotel development with market competitiveness.

While demand remains strong, STR’s projections indicate a temporary adjustment in rates as new hotels enter the market.

This shift is expected to play a crucial role in maintaining occupancy levels and attracting new visitors.

As the Kingdom’s hospitality industry expands, events such as the Future Hospitality Summit (FHS) Saudi Arabia are expected to play a key role in supporting growth.

The summit will feature a range of presentations, panel discussions, and workshops designed for both seasoned investors and newcomers.

Sessions will focus on investment opportunities in the country’s evolving hospitality sector, provide guidance for first-time investors, and outline government incentives aimed at attracting domestic and international capital.

Organised by The Bench, FHS Saudi Arabia will take place at Mandarin Oriental Al Faisaliah in Riyadh from May 11 to 13.

The event will bring together industry leaders and decision-makers who are instrumental in shaping the future of Saudi Arabia’s hospitality sector.

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