Saudi Arabia Targets 250,000 New Hotel Rooms by 2030

Saudi Arabia has set a target to add around 250,000 new hotel rooms by 2030, part of a broader plan to expand the Kingdom's total hotel capacity toward roughly 550,000 rooms by the end of the decade. The goal reflects one of the largest single-country hospitality development programs anywhere in the world.

Current estimates place Saudi hotel inventory at roughly 320,000 to 380,000 rooms, depending on whether informal and unbranded accommodation is included. Sector analyses for 2025 and 2026 project development pipelines of about 320,000 to 362,000 new keys by 2030, covering announced, planned, and under-construction projects across the Kingdom.

A significant share of this growth is concentrated in Makkah and Madinah, where around 252,000 hotel keys are announced, planned, or under construction for delivery by 2030 — the majority in four- and five-star categories to serve the growing numbers of pilgrims and visitors.

Why it matters

The expansion supports updated tourism targets under رؤية السعودية 2030, which now aims for around 150 million annual visits, split between domestic and international travelers, with tourism contributing about 10% of GDP. Financing support comes in part through a Tourism Development Fund with capital estimated at around 15 billion ريال سعودي, offering credit and co-investment for hotel and resort projects.

For residents and expats, the buildout points to more accommodation options, expanded job opportunities across hospitality, and growing investment activity in cities including الرياض and جدة. Analysts note four-star properties are expected to represent nearly half of the projected total development cost, signaling a strong focus on mid-to-upper tier hotels alongside luxury projects.

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