Riyadh and Jeddah are set to add 2,380 new hotel rooms by late 2025, according to JLL’s latest Hotels Market Dynamics report.
This includes major openings, including Conrad Riyadh Laysen Valley, Renaissance Riyadh, Rixos Obhur Jeddah, and the much anticipated Raffles Jeddah.
This growth is supported by strong demand and Saudi Vision 2030 goals to diversify tourism and attract 150 million visitors annually by 2030.
Adding New Hotel Rooms
The hospitality landscape in Saudi Arabia is undergoing a significant transformation, particularly in its two major cities, Riyadh and Jeddah. With ambitious plans to introduce 2,380 new hotel rooms by the latter half of 2025, the Kingdom is poised for a remarkable shift in its tourism sector.
This growth is not merely a response to increasing demand but also aligns with the broader objectives of Saudi Vision 2030, which aims to diversify the economy and enhance the tourism experience.
Overview of Hotels Market in Riyadh and Jeddah
Current Landscape
Riyadh and Jeddah are at the forefront of Saudi Arabia’s hospitality expansion. As of now, both cities have seen a steady increase in hotel supply, reflecting a robust demand for accommodation driven by both leisure and business travelers.
The latest insights from JLL’s Hotels Market Dynamics report highlight the ongoing growth trajectory, with Riyadh adding 690 new rooms in the first half of the year, bringing its total to approximately 49,100 keys.
Upcoming Hotel Openings
Major Projects in Riyadh
The second half of 2025 is set to be particularly exciting for Riyadh’s hospitality sector. Notable openings include:
- Conrad Riyadh Laysen Valley: This luxury hotel promises to offer unparalleled amenities and services, catering to both business and leisure travelers.
- Renaissance Riyadh Hotel: With its modern design and strategic location, this hotel is expected to attract a diverse clientele.
Riyadh has seen a surge in hotel openings, offering visitors fresh and exciting stays that redefine hospitality in the capital. The following new hotels bring a mix of elegance, innovation, and comfort, enhancing the city’s dynamic hotel landscape.
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
Jeddah’s New Additions
Jeddah is also gearing up for significant hotel openings, including:
- Rixos Obhur Jeddah: This property will feature 250 rooms and is anticipated to become a popular destination for both tourists and locals.
- Raffles Jeddah: Slated for launch later this year, this hotel is highly anticipated and is expected to elevate the luxury accommodation options in the city.
Jeddah has also seen a surge in hotel openings. The following new hotels bring a mix of elegance, innovation, and comfort, enhancing the city’s dynamic hotel landscape.
Makkah and Madinah’s Growth
Makkah and Madinah, the two holy cities, are also poised for substantial growth. Both cities maintained stable inventories of 154,590 and 60,170 rooms, respectively, in the first half of 2025.
However, they are set to add a combined total of 6,300 new keys in the latter half of the year, with Makkah contributing 5,590 rooms and Madinah adding 710.
Performance Metrics in Hospitality
The performance of hotels in Riyadh and Jeddah has shown varied results in recent months. The Average Daily Rate (ADR) in the region has seen a slight increase, reflecting the growing demand for quality accommodations. According to the latest data, the ADR rose by 1.9% year-on-year, reaching SAR 821.8.
Performance Metrics
The performance of hotels across the kingdom has shown variability. In Makkah, the Average Daily Rate (ADR) increased by 7.1%, while Revenue per Available Room (RevPAR) rose by 3.1%.
Conversely, Riyadh experienced a decline in both ADR and occupancy rates, highlighting the diverse challenges faced by different regions.
Factors Driving Hotel Development
Government Initiatives
The Saudi government is actively promoting tourism as a key economic driver. The Vision 2030 initiative aims to increase the contribution of tourism to the national GDP from 3% to 10%.
This ambitious goal is supported by various programs designed to attract both domestic and international tourists, thereby creating a favorable environment for hotel development.
Event Driven Demand
Riyadh and Jeddah are becoming increasingly popular destinations for major events, including cultural festivals, sports competitions, and international conferences.
Events like Jeddah Season and the Formula 1 races have significantly boosted hotel occupancy rates, making the cities attractive for hotel investments. The influx of visitors for these events creates a consistent demand for high-quality accommodations.
Role of International Hotel Brands
International hotel brands such as Marriott, Hilton, Accor, and IHG are increasingly investing in the Saudi market. Their presence not only enhances the quality of accommodations available but also introduces global hospitality standards to the region.
The entry of these international operators is driving the growth of high-quality hotel supply in Riyadh and Jeddah. As these brands expand their portfolios, they contribute to the overall improvement of the hospitality landscape, ensuring that visitors have access to a diverse range of accommodation options.
Aligning with Vision 2030
The growth of the hotel sector aligns with the goals of Saudi Vision 2030, which aims to attract 150 million visitors annually by 2030. This ambitious target underscores the importance of a robust hospitality infrastructure to support the influx of tourists.
Shaping Saudi’s Hospitality Sector
The upcoming addition of 2,380 new hotel rooms in Riyadh and Jeddah marks a significant milestone in the Kingdom’s hospitality journey. Supported by strong demand, government initiatives, and the entry of international hotel brands, the future of the hospitality sector in Saudi Arabia looks promising.
As the country continues to diversify its economy and enhance its tourism offerings, Riyadh and Jeddah are set to emerge as key players in the global hospitality landscape.
More New Hotel Developments in Riyadh
Kimpton KAFD Riyadh Opening
Kimpton KAFD Riyadh has officially opened as the first Kimpton Hotel in the Middle East in Riyadh’s iconic King Abdullah Financial District.
The 212 room luxury lifestyle hotel features 16 floors and offers 4 signature dining venues, a pool and event spaces in this iconic business district.
Kimpton KAFD Riyadh is the first 5 star hotel to open in KAFD and enhances Riyadh’s hospitality and business landscape.
Hilton Riyadh Olaya 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 along with 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.
TRIBE and TRIBE Living Riyadh
Naif Alrajhi Investment and the International hotel group Accor have announced plans to debut the first TRIBE and TRIBE Living Properties in the Middle East in the King Salman Park Project in Riyadh.
The TRIBE is due to offer a 250 room hotel with rooftop dining, wellness facilities as well meeting facilities.
The TRIBE Living will feature 150 serviced apartments blending bold design with functionality.
This project aims to redefine modern hospitality and raise Riyadh’s status as a luxury global hub for both leisure and business.
Radisson Collection Residence Hotel
Radisson Hotel Group and Zamil Group have partnered to open of 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, as well as a rooftop swimming pool offering stunning views of the city.
This will be the 10th property of Radisson in Riyadh, in line with the city’s growing popularity as a global hub for both business and leisure.
Marriott W Riyadh
Marriott International and King Abdullah Financial District have reached an agreement to introduce the W Hotels brand to Riyadh’s KAFD.
The upcoming establishment, named W Riyadh, is set to launch in 2025 and will feature 210 lavish rooms and suites, as well as 7 diverse dining options and spacious event venues, including signature W brand areas such as the AWAY Spa and FIT fitness center.
This collaboration is in line 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 the upcoming 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: Kimpton KAFD Riyadh Officially Opens as the First Kimpton Hotel in the Middle East
