Saudi Hotels Reach 2,847, Up 31.6% in 2025

Oct 22, 2026•2 min read

Saudi Arabia's hospitality sector posted strong growth in 2025, with the number of licensed hotels reaching 2,847 in the fourth quarter of the year — a 31.6% rise compared with 2024. The expansion reflects rising demand for accommodation across the Kingdom as tourism activity continues to grow.

Alongside hotels, the Kingdom recorded 5,937 licensed tourism hospitality facilities during the same quarter, while total hotel rooms surpassed 491,000 in 2025. The figures point to a steadily widening range of options for both leisure and business travelers.

How hotel licensing works

Tourism accommodation licenses are issued electronically through the Ministry of Tourism, and any operator must hold a valid license before running a tourism activity. Applicants must be Saudi citizens or foreign investors holding a valid investment license. Licenses are available for one, two, or three years.

Fees are tied to the number of rooms. A property with 1–99 rooms pays SAR 2,500 for one year, SAR 3,750 for two years, or SAR 5,000 for three years. Facilities with 100–299 rooms pay SAR 5,000, SAR 7,500, or SAR 10,000, while those with 300–499 rooms pay SAR 10,000, SAR 13,500, or SAR 17,000. The largest properties, with 500 rooms or more, pay SAR 12,500, SAR 17,500, or SAR 22,500. Renewal fees for facilities with 500 or more rooms are SAR 5,000, SAR 10,000, or SAR 15,000 for one, two, or three years respectively.

For residents and visitors, the growing hotel count means more choice and capacity in cities such as Riyadh and Jeddah. For entrepreneurs and investors, the clear electronic licensing process offers a defined path into one of the Kingdom's fastest-expanding sectors.

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