Saudi Arabia is set to add 362,000 new hotel rooms by 2030 as part of its $110 billion hospitality expansion, according to data released by the Future Hospitality Summit 2025.

This growth is due to major upcoming events, including Expo 2030 in Riyadh and the FIFA World Cup 2034.

This growth supports Saudi Arabia’s goals to attract 70 million international visitors annually by 2030 fueled by new travel platforms such as WelcomeSaudi.com 

The Future Hospitality Summit 2025

The Future Hospitality Summit 2025 is poised to be a significant event in the hospitality calendar, bringing together industry leaders, investors, and stakeholders to discuss the future of the sector in Saudi Arabia. 

Scheduled to take place from May 11-13, 2025, at the Mandarin Oriental Al Faisaliah in Riyadh, the summit will focus on investment opportunities and strategies for navigating the evolving hospitality landscape.

Key Themes of the Summit

• Investment Opportunities: Highlighting potential areas for investment within the hospitality sector.
• Government Incentives: Discussing the various incentives available for investors looking to enter the Saudi market.
• Innovative Solutions: Exploring technological advancements that can enhance guest experiences and operational efficiency.

Saudi Arabia’s Growing Hospitality Sector

The hospitality sector is crucial to Saudi Arabia’s economy, contributing significantly to the national GDP. 

In 2023 the industry recorded a remarkable SAR 444.3 billion contribution, accounting for approximately 11.5% of the overall economy. This growth trajectory is expected to continue, driven by the ambitious expansion plans.

Revenue Growth Trends

According to recent reports, hotel room revenue in Saudi Arabia reached an impressive $5.6 billion between January and October 2024. This figure reflects a 3.5% increase compared to the previous year and marks a significant 26.5% growth since 2019. 

The upward trend in revenue showcases the growing demand for hospitality services and the effectiveness of ongoing investments.

The Holy Cities: A Hub for Religious Tourism

The Holy Cities of Makkah and Medinah hold a special place in the heart of the Muslim community worldwide. Under the Vision 2030 strategy, an estimated 221,000 new hotel rooms are planned across these two cities.

This initiative caters to the expected surge in religious tourism. The government anticipates that 30 million religious tourists will visit the holy cities annually by 2025, projected to rise to 50 million visitors by 2030.

Planned Hotel Developments in Holy Cities

Rua Al Madinah

The Rua Al Madinah project, launched by Crown Prince Mohammed bin Salman in August 2022, spans 1.5 million square meters, with 63 percent dedicated to open and green spaces. The project will offer 47,000 hotel rooms.

This project is expected to contribute $37.3 million (SAR140 million) to the Kingdom’s gross domestic product upon completion. 

Moreover, it is expected to create 93,000 direct and indirect job opportunities, allowing recruitment throughout the construction and development phase until 2030.

From luxury accommodations to world-class restaurants and entertainment options, the Rua Al Madinah project aims to redefine hospitality standards, marking a benchmark for excellence in the industry.

Planned Hotels in Rua Al Madinah

Accor Hotels

Accor, a major player in the hospitality industry worldwide, has revealed its intentions to establish three establishments in the new development project of Rua Al Madinah Holding Company located in Madinah, Saudi Arabia. These properties will consist of:

• 142-key Fairmont hotel
• 120-key Fairmont Branded Residences
• 466-key Swissôtel and a 328-key Novotel

Marriott Hotels

Rua Al Madinah Holding and Marriott International have reached an agreement to oversee the management of eight hotels within the master plan. This partnership is anticipated to result in 4,400 new rooms and generate 4,100 employment opportunities in Rua Al Madinah. 

The eight properties in the works comprise:

• The Ritz-Carlton, Rua Al Madinah with 151 keys
• JW Marriott Rua Al Madinah with 252 keys
• Madinah Marriott Hotel Rua Al Madinah with 450 keys
• Le Méridien Rua Al Madinah with 533 keys
• The Westin Rua Al Madinah with 361 keys
• Four Points by Sheraton Rua Al Madinah with 777 key
• Aloft Rua Al Madinah and Courtyard by Marriott Rua Al Madinah with a combined 1,810 keys.

Masar Makkah Destination

The hotel landscape in Makkah is about to undergo a significant transformation with a massive investment of $666.6 million into the highly anticipated Masar Destination. 

The Masar Destination, owned by Umm Al-Qura for Development and Construction Co., has partnered with the General Authority of Awqaf to bring over 1,000 new upscale hotel rooms to the sacred city of Makkah.

The centerpiece of this project is the Residential Towers, which showcase the ambitious vision of Masar Destination.

In September 2023, Umm Al-Qura announced a collaboration with Scope Properties to construct Residential Towers in Makkah, a project worth $240 Million (SAR900 million).

Jabal Omar Development

The Jabal Omar Development Project, an 8 Billion SAR project, is a one-of-a-kind initiative focused on revitalizing the urban area to offer high-quality lodging and facilitate religious, social, and business amenities and resources for both tourists and inhabitants of the sacred city of Makkah Al-Mukarramah.

By 2030, Jabal Omar Development Company plans to run 15 hotels across 230,000 square meters area. These hotels will offer a direct view of Al Masjid Al Haram, providing guests with a convenient and spiritually enriching experience.

Jumeirah Jabal Omar Hotel

The Jumeirah Jabal Omar Hotel in the Holy City of Makkah, the first hotel in Saudi Arabia by the Jumeirah Hotel group from Dubai, has been officially announced to be open. 

Located in the second phase of the Jabal Omar development, the hotel is positioned in the heart of Jabal Omar near the Grand Mosque, Al Masjid Al Haram. 

Featuring more than 1000 rooms and suites, some offering direct views of the haram, the hotel strives to offer extraordinary experiences to pilgrims on their Hajj and Umrah journeys.

Address Hotel Jabal Omar

The 5-star Address Jabal Omar Makkah Hotel provides a luxurious stay, dining options, and other amenities, making it a spiritual sanctuary in the center of Makkah. Just 1640 feet away from Masjid Al Haram, the hotel offers a fitness center, private parking, a shared lounge, and a restaurant for its guests.

The 5-star Address Hotel in Jabal Omar Makkah has also revealed Sky Musallah, the highest prayer room in the world located within a sky bridge

Standing at an impressive 483 meters above sea level, it has earned a Guinness World Record. The Sky Musallah offers stunning panoramic views of Al Masjid Al Haram, The Holy Kaaba, and Makkah City. 

The sky bridge connects the two twin towers of The Address Jabal Omar Hotel, spanning the 36th to 38th floors, and has a capacity of 520 people. It is a remarkable lookout point for guests staying at this iconic and centrally located hotel in Makkah.

Renowned Hotels in Jabal Omar Makkah

• Jabal Omar Hyatt Regency Makkah Hotel
• Hilton Suites Makkah Hotel
• Conrad Makkah
• Hilton Makkah Convention Hotel
• DoubleTree by Hilton Makkah Jabal Omar Hotel
• Jabal Omar Marriott Hotel Makkah

Voco Makkah

To provide for religious travelers’ needs during the Hajj or Umrah seasons, IHG Hotels & Resorts has launched its premium Voco brand in Makkah. Voco Makkah is the third Voco property in Saudi Arabia and the largest globally, with 4,321 keys.

Thakher Makkah City

The Thakher project, a $7 Billion project, boasts a team of top-tier urban planners and designers, transforming the rugged hills of the Holy City into a highly accessible, diverse, and hospitable destination, which aims to host 30 million Umrah performers and six million pilgrims by 2030

Spanning 320,000 square meters and situated just 1km from Masjid al-Haram in Makkah, the completed Thakher Makkah will feature approximately 100 land plots designated for hotels, residences, commercial spaces, and service-related establishments. 

The Thakher Makkah development features a range of renowned global hotels, such as the Radisson Hotel, Park Inn by Radisson, and the Novotel Hotel.

The project will include a capacity of 10,000 car parking spaces and a mosque that can hold 5,000 people for prayer. 

Planned New Hotels in NEOM

NEOM, Saudi Arabia’s ambitious $1 Trillion billion gigaproject, is set to revolutionize the concept of urban living. This futuristic development, spanning 26,500 square kilometers, will feature innovative living spaces with a selection of new upcoming luxury hotels due to open their doors soon.

New NEOM hotels announced include:

• The Autograph Collection Sindalah Island
• The Luxury Collection Sindalah Island
• Kerten Hospitality
• W Hotel Trojena
• JW Marriott Hotel Trojena
• Raffles Trojena
• Four Seasons Sindalah Island
• Anantara Resort Trojena
• 25-Hours Trojena
• Morgans Originals Trojena
• The Chedi Trojena
• YOTEL Oxagon
• Hotel Indigo Oxagon

Hotel Developments on Red Sea

The Red Sea Project aims to create a world-class luxury tourism destination along Saudi Arabia’s western coast. This development will feature high-end resorts, residential properties, and leisure facilities spread across 28,000 square kilometers.

Newly Opened Hotels on the Red Sea

The Red Sea, one of RSG’s flagship destinations, welcomed its first guests last year, with 5 of its hotels now open and operational. These hotels include:

• The newly opened Six Senses Southern Dunes
• The newly opened St. Regis Red Sea Resort
• The newly opened Nujuma, a Ritz-Carlton Reserve
• The newly opened Desert Rock Resort
• The newly opened Shebara Resort

Planned Hotels to Open on Red Sea

Following the opening of The St. Regis Red Sea Resort and Najuma, a Ritz-Carlton Reserve, other luxury resorts are set to open in the Red Sea, including:

• Red Sea Residencies
• Sheybarah Resort
• Four Seasons at AMAALA Triple Bay
• Ritz Carlton, AMAALA
• Four Seasons Resort Red Sea
• Miraval The Red Sea
• Rosewood Red Sea
• Fairmont The Red Sea
• Grand Hyatt The Red Sea
• InterContinental Resort Red Sea
• Jumeirah The Red Sea
• The Red Sea Edition
• Faena The Red Sea
• SLS The Red Sea
• Rosewood Amaala
• Clinique La Prairie Health Resort
• Jayasom Wellness Resort
• Six Senses Amaala
• Equinox Resort Amaala

Hotel Developments in Riyadh

Riyadh’s hospitality scene is also booming, with a wave of luxury and lifestyle hotels opening their doors to cater to the city’s growing influx of visitors. 

As Saudi Arabia’s capital continues its transformation into a global tourism and business hub, new hotels are setting new standards in comfort, design, and world-class amenities. 

Newly Opened Hotels in Riyadh

Riyadh has seen a surge in hotel openings, offering visitors fresh and exciting stays that redefine hospitality in the capital. These following new hotels bring a mix of elegance, innovation, and comfort, enhancing the city’s dynamic hotel landscape.

• Novotel Riyadh Sahafa Hotel 
• Hilton Riyadh Olaya

Upcoming Hotels in Riyadh

With Riyadh’s ambitious tourism and development goals, even more high-end hotels are set to debut soon. These upcoming properties promise to elevate the city’s hospitality scene, introducing new levels of luxury, style, and service.

• Red Palace Boutique Hotel 
• Accor TRIBE and TRIBE Living 
• Radisson Collection Residence Hotel 
• W Riyadh 
• Regent Riyadh KAFD and InterContinental Riyadh KAFD 
• Rotana Hotel Group

New Luxury Hotels Planned for Diriyah

The expansive Diriyah project, worth 63.2 billion dollars, is expected to span 14 square kilometers. Once completed in 2030, it will house over 100 restaurants, nine museums, and 30,000 homes. The project aims to create over 178,000 jobs and attract over 50 million visits annually.

Diriryah will feature 42 hotels upon completion, making it the city’s luxury hospitality center. These include:

• The newly opened Bab Samhan, the First Luxury Collection Hotel
• Ritz-Carlton hotel
• Armani Branded Residences
• Raffles Residences Diriyah
• Anantara
• Corinthia
• EDITION
• Faena
• The Chedi
• Hyatt Place
• Montage Hotels & Resorts
• Moxy
• 1 Hotels
• Pendry Hotels & Resorts
• Radisson RED
• Taj
• The Langham
• treehouse Hotels
• Waldorf Astoria
• Well Health Retreat
• Armani Hotel
• Four Seasons
• Park Hyatt
• Address Hotels + Resorts
• Baccarat Hotels & Resorts
• Campbell Gray Hotels and Resorts
• Orient Express
• Rosewood
• Oberoi
• Six Senses

Factors Behind the Expansion

Several key factors contribute to the momentum behind Saudi Arabia’s hospitality expansion, shaping the landscape of the tourism industry.

Increase in International Arrivals

In 2024, Saudi Arabia welcomed 30 million international visitors, a significant increase from 27.4 million in 2023. This arrival surge underscores the Kingdom’s growing appeal as a travel destination and highlights the effectiveness of marketing strategies to attract tourists.

Major Upcoming Events

Saudi Arabia is set to host several high-profile international events, including:

• Expo 2030: A global exhibition that will showcase innovation and culture.

• FIFA World Cup 2034: An opportunity to position the Kingdom as a premier sports destination.

• Asian Winter Games 2029: A new venture into winter sports tourism.

These events are expected to draw millions of visitors, further fueling the demand for hospitality services.

Vision 2030: A Catalyst for Change 

The Vision 2030 program is a comprehensive plan initiated by the Saudi government to diversify its economy and reduce dependency on oil revenues. 

This ambitious vision encompasses various sectors, including tourism, which is seen as a vital component of economic growth. The hospitality expansion is not merely a response to rising demand but a proactive measure to create a robust infrastructure that can support millions of international visitors.

As part of this vision, the Kingdom aims to attract 70 million international visitors annually by 2030, significantly increasing its global tourism footprint.

Saudi Hospitality Boom

The 362,000 new hotel rooms expected by 2030, coupled with a $110 billion hospitality expansion, will not only enhance the guest experience but also contribute significantly to the economy. 

By leveraging upcoming events and fostering a culture of collaboration, Saudi Arabia is set to attract 70 million international visitors annually, solidifying its position as a premier travel destination for years to come.

More New Hotel Developments in Riyadh 

Hilton Riyadh Olaya’s Opening

Hilton has launched its luxurious Hilton Riyadh Olaya in the center of Riyadh along King Fahd Road. 

The hotel boasts 239 upscale guest rooms with impressive city views and offers unique facilities and a variety of dining options, including the Greek-inspired Parea Brasserie. 

This new addition further expands Hilton’s portfolio of luxury properties in Riyadh.

Novotel Riyadh Sahafa Hotel

The new Novotel Riyadh Sahafa Hotel, located in the lively Al Sahafa district of Riyadh, has been opened by Accor for guests. 

Hessa Al Mazroa, the first female General Manager in the country for Accor, leads the hotel, which is conveniently situated near the King Abdullah Financial District (KAFD) and just 15 km from King Khalid International Airport. 

With 232 luxurious and contemporary rooms and suites, a top-notch fitness center, an outdoor pool, a variety of dining options, and impressive views of Olaya Street, one of the bustling streets of Riyadh, the hotel is a prime destination for guests. 

This marks Accor’s 9th Novotel property in Saudi Arabia as they continue to expand in the country.

Red Palace Boutique Hotel

The PIF-owned Boutique Group, known for converting historic Saudi palaces into luxury hotels, is set to open the much anticipated Red Palace in April 2026.

Located in old Riyadh, this exclusive boutique hotel will offer 70 elegantly designed rooms and suites, complete with butler services and world-class dining experiences.

This project reflects Saudi Arabia’s vision to enhance its hospitality sector while preserving its rich cultural heritage.

Accor TRIBE and TRIBE Living

Naif Alrajhi Investment, in collaboration with the international hotel group Accor, has revealed plans to bring the first TRIBE and TRIBE Living properties to the Middle East within the  King Salman Park Project in Riyadh.

The TRIBE hotel will feature 250 rooms, offering a rooftop dining area, wellness amenities, and meeting spaces.

TRIBE Living will present 150 serviced apartments that combine striking design with practical living.

This initiative is set to transform the modern hospitality landscape and enhance Riyadh’s reputation as a leading luxury destination for both leisure and business.

Radisson Collection Residence Hotel

Radisson Hotel Group and Zamil Group have partnered to open a five-star Radisson Collection Residence Hotel in Riyadh at the end of 2024. 

This will mark the first Salmani architectural tower in Saudi Arabia, situated on the famous King Fahad Road. 

The hotel is set to boast 170 luxurious rooms and suites, including 8 penthouses and 4 villas, and a rooftop swimming pool offering stunning city views. 

This will be the 10th property of Radisson in Riyadh, in line with the city’s growing popularity as a global hub for business and leisure.

Marriott W Riyadh

Marriott International and King Abdullah Financial District have agreed to introduce the W Hotels brand to Riyadh’s KAFD. 

The upcoming establishment, W Riyadh, is set to launch in 2025 and will feature 210 lavish rooms and suites, 7 diverse dining options, and spacious event venues, including signature W brand areas such as the AWAY Spa and FIT fitness center. 

This collaboration aligns with KAFD’s goal to become the most renowned and cutting-edge business district globally, which is currently housing Saudi Arabia’s Public Investment Fund and various multinational companies.

IHG and Regent Hotels Luxury Hotels in KAFD

IHG Hotels & Resorts will be expanding their presence in Riyadh’s King Abdullah Financial District (KAFD) with the opening of two new luxury hotels – Regent Riyadh KAFD and InterContinental Riyadh KAFD by January 2027, 

Visitors will have the opportunity to experience the stunning architecture of KAFD and dine at world-class restaurants in the world’s largest LEED-certified mixed-use business district when IHG’s first KAFD hotel, Kimpton at KAFD, opens later this year.

The Rotana Group Hotels

The Rotana Hotel Group has announced its plans to double its presence in Saudi Arabia by launching 8 new hotels within the Kingdom in four years. 

This announcement was made during the recent Saudi Tourism Forum held in Riyadh to expand to a total of 16 properties and 4,400 guest rooms. The growth plan encompasses the development of new hotels in Riyadh, Madinah, Khobar, and Al Baha.

These hotel developments will redefine luxury hospitality standards and contribute to Saudi Arabia’s vision of becoming a leading global tourism destination.

Keep Reading: Boutique Group Announces the Opening of Red Palace in April 2026