Saudi Arabia's licensed hotel sector continued its rapid expansion, with the number of licensed hotels reaching 2,963 in the first quarter of 2026, up from 2,847 in 2025. The growth reflects sustained momentum in the Kingdom's tourism and hospitality industry.
The increase builds on strong gains the previous year, when the 2,847 figure marked a 31.6% year-on-year rise. Beyond hotels, the Kingdom counted roughly 6,122 licensed tourism hospitality facilities in Q1 2026, a category that includes 3,159 serviced apartments alongside other accommodation types.
Occupancy figures offered a more measured picture. Hotel-room occupancy stood at 60.8% in the first quarter of 2026, slightly lower than the 63.0% recorded in the same period of 2025. The dip comes even as the overall supply of rooms and properties expanded, suggesting the market is absorbing a growing inventory.
Why it matters
For residents and visitors across the Kingdom, the widening range of licensed accommodation means more choice, from full-service hotels to serviced apartments suited to longer stays and families. The continued growth also signals rising investment in travel and tourism infrastructure, in line with the Kingdom's broader goals to diversify its economy.
The expansion supports a larger hospitality ecosystem, creating jobs and services linked to tourism in cities such as Riyadh and Jeddah. As the number of licensed properties climbs, travelers can expect greater availability during peak seasons and major events.
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