Saudi Arabia’s hotel sector is entering a period of sustained expansion, with the Kingdom’s room inventory set to increase from its current base of 171,650 keys.
According to Knight Frank’s Saudi Report, approximately 94,500 additional rooms are either under construction or at advanced planning stages. This follows a year in which the country’s travel and tourism industry expanded by 32 percent, signalling continued activity across hospitality, infrastructure and visitor demand.
Oussama El Kadiri, partner and head of hospitality, tourism and leisure advisory, MENA at Knight Frank, says: “Growth in Saudi Arabia’s hospitality market is being driven by a combination of government initiatives, private sector investment and evolving consumer preferences. Travel and tourism contributed a record SAR444.3 billion (US$114.4 billion) to the economy in 2024, representing 11.5 percent of the nation’s GDP – the highest in the region, according to the World Travel & Tourism Council.”
Recent performance indicators point to continued demand. In the first quarter of 2025, international visitor spending reached SAR49.4 billion, reflecting a year-on-year increase of 9.7 percent, while total tourism expenditure rose by 11 percent to SAR284 billion. More
by Safa Hassan Hotelier Middle East
