Saudi Arabia: 320,000 new hotel rooms expected by 2030, reveals report

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Saudi Arabia’s hospitality sector is poised for significant growth, with ambitious plans to deliver 320,000 new hotel rooms by 2030, according to real estate consultancy, Knight Frank.

This initiative, boasting a development cost of $37.8bn, reflects the kingdom’s efforts toward tourism transformation and infrastructure development.

According to the report, the kingdom’s tourism spending reached almost $40bn in 2023 – up nearly 43 per cent on 2022.

The industry data was released ahead of the Future Hospitality Summit Saudi Arabia (FSH), scheduled to be held from April 29 to May 1.

FSH, set to take place at the Mandarin Oriental Al Faisaliah in Riyadh, will serve as a platform for debate, deliberation, and deal-making on investment opportunities, ESG initiatives, talent development, and the rise of women in the sector.

The three-day event will showcase the immense potential and opportunities within Saudi Arabia’s burgeoning hospitality industry.

This event is a key platform for the kingdom’s hospitality sector that’s aiming to triple its current number of hotel keys in alignment with Vision 2030.

Key factors boosting Saudi Arabia’s tourism and hospitality sector

With a plethora of new hotels, resorts, and tourist attractions slated to open in the next six years, the kingdom is set to redefine its position as a global tourism hub.

Key to this growth is the substantial influx of visitors from Muslim-majority nations, with Bahrain, Kuwait, and Egypt emerging as the top three source markets.

Religious tourism remains a cornerstone of Saudi Arabia’s tourism strategy, with 27 million pilgrims visiting the country in 2023, almost triple the pre-Covid number.

Turab Saleem, partner and head of Hospitality, Tourism & Leisure Advisory at Knight Frank MENA, highlights the kingdom’s ambitious targets, stating, “With a new target of welcoming 150 million visitors by 2030 – a 50 per cent increase from its previous goal – the Saudi government is actively exploring various strategies to attract international travellers.”

The hosting of global events such as the 2030 World Expo and the 2034 FIFA World Cup has boosted the country’s position on the world stage, promising substantial economic boosts and increased tourism momentum.

FSH sponsor Knight Frank’s research predicts that Marriott International (26,200 hotel keys by 2030) and Accor Hotel Group (around 25,400 keys by 2030) will emerge as key players in Saudi Arabia’s hospitality landscape, with significant room operations by 2030.