Saudi Arabia’s hospitality sector is experiencing unprecedented growth, driven by the Kingdom’s Vision 2030 and a surge in tourism-related infrastructure projects. Recent reports indicate the country is poised for significant growth in the coming years, positioning it as a global hospitality leader. With a booming tourism market and new hospitality brands expanding rapidly, Saudi Arabia is fast becoming a top destination for travellers worldwide.
Unmatched growth
According to JLL’s latest report, Saudi Arabia’s hospitality sector is set to outpace global growth with a projected 4% compound annual growth rate (CAGR) from 2024 to 2028. The Kingdom is expected to account for 58% of the total hotel supply in the MENA region by 2028, bolstered by an additional 106,000 hotel rooms in the pipeline. This growth has already surpassed initial goals, with tourism contributing 11.5% to the country’s GDP in 2023.
Key cities like Riyadh and Madinah are leading the charge, with Saudi Arabia’s revenue per available room (RevPAR) increasing 9% annually since 2019. The Kingdom’s hotels are outperforming global hospitality markets, with MENA region RevPAR growth of 28% since 2019, compared to Europe’s 25% and the Americas’ 18%.
Earth Hotels brings eco-properties to Saudi
Among the many exciting new developments, Earth Hotels is taking a bold step into the Saudi market with its upcoming openings in Riyadh and Jeddah. Earth Hotels, known for its design-forward and eco-conscious approach, will open its flagship property, Earth Riyadh, in the third quarter of 2026. Located in the Al Maathar district, the hotel will feature 86 rooms, lofts, and suites. It will be more than just a hotel, it’s designed to be a dynamic experience hub, offering community spaces, co-working areas, a rooftop lounge, and an array of cultural activations. This is where Saudi culture, modern design, and a lively social atmosphere will come together for both leisure and business travellers.
Just one year later, Earth Hotels plans to open Earth Hotel and Living Jeddah Waterfront in Q3 2027. This property promises to redefine waterfront living and hospitality, with 110 hotel rooms and 179 serviced apartments set against the backdrop of Jeddah’s stunning coastline. The design will incorporate the region’s rich heritage, blending it with contemporary flair. Guests can expect world-class wellness facilities, including cryotherapy and float therapy, as well as co-working spaces, retail options, and social event areas.
Radisson Hotel Group expands its existing footprint
Radisson Hotel Group, another major player in Saudi Arabia’s hospitality scene, continues to expand its footprint, with 47 properties in operation or under development in the Kingdom. Recent openings include the Radisson Blu Hotel & Convention Centre, Riyadh Minhal, a 310-key property, and the Radisson Hotel Madinah, a significant addition to the Group’s presence in the holy cities.
Upcoming openings include the Radisson Blu Hotel, Riyadh Al Sahafa, and the Radisson Hotel Jeddah Tahlia Street, set to open in 2025. These hotels will continue to serve Saudi Arabia’s religious and leisure tourism markets, offering high-end amenities and modern hospitality experiences to travellers.
Additionally, Radisson has announced new partnerships, including an agreement with the Saudi Tourism Authority and a collaboration with Knowledge Economic City (KEC) for a Park Inn by Radisson in Madinah’s Islamic World District. These developments emphasize the growing synergy between global hospitality brands and the Kingdom’s evolving tourism infrastructure.
More Fairmont Hotels coming by 2028
Fairmont Hotels & Resorts, renowned for its luxury hospitality offerings, is also strengthening its presence in Saudi Arabia. The brand is set to open three new properties by 2028, in key destinations such as the Red Sea, Al Khobar, and Madinah. The Fairmont Red Sea will open by the end of 2025, followed by Fairmont Ajdan Al Khobar in 2027 and Fairmont Rua Madinah in 2028. With a total of 616 keys, these openings are expected to significantly bolster the brand’s presence in Saudi Arabia.
Emerging destinations for hospitality investment
Beyond the major cities, Saudi Arabia’s emerging destinations are also attracting interest from global investors. Cities such as Taif and Al Ahsa are identified as untapped gems, with these regions representing 23% of the Kingdom’s visitor numbers. Despite attracting approximately 20 million visitors annually, these cities still have limited hotel supply, making them prime locations for future hospitality investment. Quality hotel rooms in these areas account for only 25-30% of the total, creating a significant gap for first-movers to capitalise on.
The future of Saudi hospitality
With international brands like Earth Hotels, Radisson, and Fairmont leading the charge, Saudi Arabia is not only witnessing a surge in hotel openings but also a rise in innovative, community-driven, and culturally immersive hospitality experiences.
As the Kingdom continues to expand its infrastructure and tourism offerings, Saudi Arabia’s hospitality sector is set to remain a key player in the global tourism industry, attracting travellers and investors from around the world. With more hotels opening in the coming years and a strong focus on quality, sustainability, and design, the future of the sector is exciting.
