Saudi Arabia leads $90 billion regional hotel development boom

Saudi Arabia is leading hotel expansion across the Middle East, with 110,000 rooms under development, accounting for approximately half of the region’s hotel pipeline, according to hospitality consultancy HVS.

The Kingdom’s projects span Riyadh, Makkah, Madinah, Diriyah, NEOM, the Red Sea and Amaala, as the country invests in new tourism destinations and hospitality infrastructure.

Saudi Arabia’s pipeline forms part of a broader $90 billion hotel development drive across the GCC and North Africa, expected to add approximately 200,000 rooms and increase the region’s existing hotel supply by 27%.

According to HVS, around 88,000 rooms are currently under construction, with another 25,000 in the final planning stages. More than 55% of upcoming hotels are expected to open by 2030.

Hala Matar Choufany, President of Middle East, Africa and South Asia at HVS, said the expansion reflects continued investor confidence in the region’s tourism and hospitality sectors.

“The region’s investment in hotel expansion underscores not only the scale of development, but also the depth of capital that continues to back the region’s tourism ambitions,” she said.

Saudi Arabia’s hotel expansion comes as the Kingdom works to attract 150 million visitors annually by 2030, having exceeded its initial target of 100 million ahead of schedule.

The Ministry of Tourism aims to increase the country’s hotel room supply to more than 550,000 by 2030, while raising tourism’s contribution to GDP to 10%.

Tourism spending reached approximately SR304 billion ($81 billion) in 2025, according to the Kingdom’s Vision 2030 annual report and Ministry of Tourism data.

Government-backed investment vehicles and public-private partnerships are supporting major hospitality developments, while developers are increasingly incorporating branded residences and mixed-use projects to diversify revenue streams.

Choufany said these investment models are playing an increasingly important role in financing Saudi Arabia’s large-scale tourism destinations and supporting hotel development across the wider region.