USD 110 Billion to Be Invested in 362,000 New Hotel Rooms by 2030

Saudi Arabia is set to develop 362,000 new hotel rooms by 2030 as part of a USD 110 billion investment to expand its hospitality sector. The announcement comes ahead of the 2025 Future Hospitality Summit, which will take place in Riyadh from May 11th to May 13th.

Between January and October 2024, Saudi Arabia’s hospitality revenue reached USD 5.6 billion, marking a 3.5% increase year-on-year. Tourism contributed SAR 444.3 billion (11.5% of GDP) in 2023. International visitor numbers rose to 30 million in 2024, up from 27.4 million in 2023. The Kingdom aims to attract 70 million international tourists annually by 2030.

The demand for accommodation is expected to rise further as Saudi Arabia prepares to host major global events, including Expo 2030, the 2034 FIFA World Cup, and the 2029 Asian Winter Games. Riyadh and Madinah saw strong hospitality sector growth in 2024, with Riyadh recording a 16% rise in average daily rates (ADR) and Madinah seeing a 5% increase.

Despite strong occupancy rates, analysts anticipate short-term price adjustments as new hotels enter the market. However, strategic pricing measures are expected to maintain stable occupancy levels across the country.

The Future Hospitality Summit will focus on investment opportunities in the sector under the theme “Where Vision Meets Opportunity”. Last year’s edition resulted in USD 1.1 billion in deals, with expectations that the 2025 summit will exceed this figure. The event will feature discussions on government incentives, market trends, and Vision 2030’s roadmap for the hospitality industry.