Saudi Arabia is set to add a staggering 320,000 hotel rooms by 2030, all in pursuit of a bold goal—attracting 150 million visitors each year.

This massive undertaking highlights the kingdom’s determination to transform tourism into a key pillar of its economy, with an open invitation for domestic and international travelers to experience the region’s evolving allure.

While the current growth is fueled by regional travelers, Saudi Arabia is setting its sights on a global audience, pouring billions into new ventures—from iconic cultural landmarks to high-profile events like the World Expo 2030 in Riyadh—cementing its place on the world’s tourism map.

Christoph Mares, CEO of Boutique Group, observes that the world is admiring Saudi Arabia as the kingdom accelerates unprecedented growth across every sector under Vision 2030.

“As Saudi Arabia continues to redefine itself on the global stage, hospitality has a critical role to play in welcoming the world to experience the depth and diversity that this country has to offer,” adds Mares.

Mares explains that Boutique Group, a PIF-owned company, is dedicated to supporting the kingdom’s efforts to diversify its economy by driving growth in the tourism and hospitality sectors.

“By transforming historical palaces into contemporary luxury hotels, we are developing a unique and high-value tourism offering that attracts discerning travelers and positions Saudi Arabia as a leading luxury destination.”

THE ROLE OF PARTNERSHIPS

Boutique Group plans to achieve this by forming strategic partnerships with international market leaders who align with their vision.

“We believe that global partnerships are essential to showcasing the richness and depth of Saudi culture to the world, and our collaborations with world-renowned architects like Tristan Auer and Jacques Garcia are a testament to the quality of the partnerships we have fostered to date,” Mares explains.

Boutique Group collaborates with leading hospitality trainers like Sommet Education to equip its Saudi team with world-class skills, transforming its palaces into cultural hubs that amplify Saudi Arabia’s presence on the global stage.

“Together, we are attracting top talent from around the work world while also actively recruiting Saudi nationals and working with top educational and training providers to equip them with the skills and experience they need to succeed,” states Mares. “We’re proud to say that Saudis comprise 85% of our staff. It’s crucial to give them a voice in the sector, as this is their culture, and they are Saudi hospitality’s greatest ambassadors.”

BALANCING LUXURY AND CULTURE

Culture also plays a crucial role in Boutique Group’s approach, as they tap into the ancient art of Arabian hospitality with a contemporary twist.

“Today’s luxury travelers are growing tired of traditional locations and hospitality groups, and they’re seeking something new and fresh,” Mares says.“Our partnerships with the Saudi Ministry of Culture, and organizations like the Royal Institute of Traditional Arts allow us to ensure an accurate and respectful representation of Saudi traditions within our guest experiences. We also take pride in working with the finest local artisans, farmers, and other suppliers who allow us to blend international design expertise with authentic Saudi attention to detail.”

Boutique Group’s dedication to Saudi culture fuels its innovative hospitality model, blending tradition with modern luxury. By partnering with multi-generational Saudi craftsmen, the group preserves heritage while empowering artisans with contemporary tools to scale large projects.

Advanced technologies, including AI, elevate guest experiences by personalizing services and optimizing operations to meet global standards. Data-driven insights help tailor offerings emphasizing privacy, custom experiences, and work-leisure integration.

Boutique Group is also delving into augmented reality to craft immersive storytelling and developing digital platforms that merge heritage with technology, setting fresh benchmarks in luxury hospitality.

Next year, Boutique Group will unveil “The Red Palace,” a project that encapsulates its vision of merging luxury with heritage. As one of Saudi Arabia’s most iconic landmarks, the palace was built in 1943 by King Abdulaziz and later served as the headquarters for the Council of Ministers.

The architecture of The Red Palace is a masterclass in blending traditional Najdi design with 19th-century European and Art Deco influences—an elegant reflection of the kingdom’s growing global interconnectedness. Thoughtful touches, such as the UNESCO-recognized Taif rose, infuse the space with a deep sense of Riyadh’s cultural heritage.

For Mares, this hotel is more than just a new addition to Saudi Arabia’s hospitality scene. It is a milestone in the kingdom’s evolution, offering an experience that immerses guests in the property’s rich history and the dynamic cultural landscape surrounding it.

“As we prepare to open the hotel in 2026, that story is going full circle as we once again bring the palace to life, and welcome visitors from all across the world to experience the finest Saudi hospitality.”

TRENDS IN THE INDUSTRY

Similar to every industry, Mares believes personalization is key when it comes to hospitality. “Today, more than ever, people want a service that is personalized, bespoke and individualized to them. They want to feel that their wants and needs are understood and accounted for. The traditional cookie-cutter approach simply doesn’t resonate with discerning travelers anymore.”

In Saudi Arabia, Mares notes that each property reflects a unique region, era, and culture, showcasing its distinctive charm, architectural style, and cultural identity.

“This approach not only enhances the guest experience but also provides richer, more diverse storytelling opportunities, allowing us to showcase the multifaceted heritage of Saudi Arabia in a truly compelling way,” says Mares. “It’s about crafting a portfolio of distinct narratives that collectively form the Boutique Group brand, rather than replicating a single, uniform experience across our hotels.”

Mares emphasizes that sustainability has become a necessity, not just a trend. Aware of the environmental impact of large-scale properties, the group is dedicated to minimizing its footprint.

To achieve this, it is working with experts to implement a comprehensive sustainability program focused on energy efficiency, water conservation, and responsible sourcing. Boutique Group has also established a strong ESG framework, aiming for LEED certification across all its hotels, while prioritizing partnerships with local and regional suppliers whenever possible.

On the digital front, Boutique Group is leveraging technology to redefine the guest experience at every phase. 

“From the moment a guest begins planning their stay to the time they check out and beyond, we are leveraging AI and digital innovation to create a seamless, intuitive, and highly personalized journey. For instance, we integrate AI-driven solutions to enhance guest interactions, streamline operations, and deliver tailored experiences. This includes using predictive analytics to anticipate guest preferences.”

Meeting the needs of multi-generational travelers is a key priority, with tailored rooms, age-specific activities, and family-friendly services such as kids’ menus, laundry, and concierge support.

“We want to create effortless and enriching experiences for every family member, ensuring that each guest, from the youngest to the oldest, feels valued and cared for and takes home a memory that lasts a lifetime.”