Saudi Arabia is quickly becoming one of the most attractive places in the world for hotel investment. With a booming tourism industry and major government support, the Kingdom offers great opportunities for both local and international investors.
Saudi Arabia’s Tourism Boom
In recent years, Saudi Arabia has opened its doors to the world. In 2023 alone, the country welcomed over 109 million tourists, including 27.4 million international and 81.9 million domestic visitors. This growth has been faster than any other tourism destination globally.
In fact, Saudi Arabia has already surpassed its original goal of 100 million tourist visits by 2030. Now, the target is 150 million visits by the end of the decade.
Government Support and Vision 2030
Tourism is a key part of Vision 2030, Saudi Arabia’s plan to move away from oil and build a more diverse economy. The government is investing up to $1 trillion in tourism, entertainment, and leisure projects.
Some major upcoming events include:
Riyadh Expo 2030
Asian Winter Games 2029
FIFA World Cup 2034
These events will attract millions of visitors and create a high demand for hotel rooms.
Demand for More Hotels
Right now, Saudi Arabia has about 426,000 licensed hotel rooms. To meet growing demand, the country needs 360,000 more rooms by 2030. This creates a major opportunity for hotel investment.
New hotel projects are being developed across the country. While Riyadh and Jeddah are the top markets, smaller cities also show strong potential. International hotel chains like Best Western, Hilton, and Marriott are expanding fast.
For example, Best Western Hotels and Resorts plans to increase its presence from 7 hotels to 45 hotels by 2027.
Different Market Segments Are Growing
There is a strong push for luxury tourism, especially in destinations like:
Red Sea Global
AlUla
NEOM
Diriyah
However, the biggest growth is expected in the mid-market hotel segment. This includes 3- and 4-star hotels that serve business travelers, domestic tourists, and visitors from nearby countries.
Brands like SureStay by Best Western are targeting this market. These hotels are more affordable and are in high demand from people traveling for business or family reasons.
Key Benefits of Hotel Investment in Saudi Arabia
Here are the top reasons why now is a great time to invest in hotels in Saudi Arabia:
High Demand: Strong growth in domestic and international tourism.
Government Incentives: Investors receive support, including financial incentives and streamlined regulations.
Event-Driven Growth: Major international events will bring millions of visitors.
Diverse Locations: Opportunities in both large cities and smaller towns.
Strategic Location: Saudi Arabia is within a 6-hour flight of 40% of the world’s population.
Strong Spending: Tourist spending reached $40 billion in the first half of 2024.
Hotel investment in Saudi Arabia is no longer just a future opportunity—it’s happening now. With rising demand, strong government backing, and global attention, the Kingdom is becoming a tourism powerhouse.
Whether you are an investor, hotel operator, or developer, this is the right time to explore the booming hotel sector in Saudi Arabia.
Start your hotel investment journey today—Saudi Arabia is open for business and ready to welcome the world.
