Executive Summary: The Saudi Hospitality Boom
Saudi Arabia is building the world's largest hospitality pipeline, targeting 300,000+ hotel rooms by 2030 to support its 150 million annual visitor target under Saudi Vision 2030. The New Murabba district alone plans 10,100 hotel rooms. National tourism reached 122 million visitors in 2025, generating approximately $81 billion in spending per the Saudi Tourism Authority. The Public Investment Fund's hospitality subsidiaries — including Red Sea Global, AMAALA, Diriyah Gate, and ROSHN — collectively represent over $50 billion in hospitality development. This report provides institutional hotel investment intelligence for Vision 2030 AI.
Tourism Performance: 122 Million Visitors
Saudi Arabia welcomed 122 million visitors in 2025, on track for its 150 million target by 2030. The UN World Tourism Organization and World Travel & Tourism Council rank Saudi Arabia among the fastest-growing tourism destinations globally. Per-visitor spending averaged $664, with luxury segment visitors spending 3–5x this amount. Riyadh Season alone attracted 20 million visitors (+47.6% YoY), generating SAR 6 billion ($1.6B).
Medical tourism is emerging as a high-value segment: $1.6 billion (2025), projected to reach $8.9 billion by 2034 at 20.71% CAGR. The Kingdom's healthcare investment — including King Faisal Specialist Hospital expansions and the AMAALA wellness resort cluster — positions medical tourism as a premium hospitality driver.
Branded Residences: SAR 65,000/sqm Premium
Knight Frank reports SAR 3.57 billion ($953 million) in private capital committed to branded residences in Saudi Arabia. 67%+ of Saudi nationals intend to purchase a branded residence. Current inventory: 1,775 existing units with 2,500 additional by 2028. Branded residences command SAR 65,000+/sqm versus SAR 5,500/sqm for non-branded — a 12x price premium that reflects brand, amenity, and management quality.
Recent launches include Mouawad Residences (SAR 880 million), Trump Tower Jeddah, and Etoile by Elie Saab. Global hospitality brands — Four Seasons, Aman, Ritz-Carlton, St. Regis, Rosewood, and Mandarin Oriental — are all developing Saudi branded residence projects.
AMAALA: 9 Resorts, 1,600+ Keys
AMAALA — part of Red Sea Global — is developing 9 ultra-luxury resorts with 1,600+ rooms/keys along the Red Sea coast. The late 2025 phased opening includes: Clinique La Prairie (74 rooms, first global expansion), Six Senses (100 suites), Equinox (128 rooms, first Middle East hotel), Four Seasons (202 keys), and Rosewood (110 rooms). Red Sea Global has invested SAR 51 billion in Phase One.
RevPAR and Occupancy Data
According to STR, Saudi Arabia's hotel RevPAR has grown consistently since 2021, with Riyadh luxury segment RevPAR exceeding SAR 800 in peak seasons. Jeddah and Mecca/Medina maintain high occupancy year-round due to Hajj and Umrah pilgrimage demand. The Saudi Tourism Development Fund has deployed capital across 40+ hospitality projects, providing below-market financing to accelerate development. Average hotel yields in Saudi Arabia range from 7–9% for established properties, per JLL and CBRE.
New Murabba: 10,100 Hotel Rooms
The New Murabba Development Company district plans 10,100 hotel rooms across multiple brands and categories — from ultra-luxury (5-star branded) to premium business (4-star). At scale, this would make New Murabba one of the most hotel-dense developments globally. The district's adjacency to King Abdullah Financial District (75+ regional HQs), the Riyadh Metro, and Expo 2030 Riyadh infrastructure creates a corporate and events-driven demand base that supports high occupancy.
Investment Framework: How to Invest in Saudi Hotels
Foreign hotel investment is facilitated through the Ministry of Investment: 100% foreign ownership permitted since 2021. The Capital Market Authority (CMA) regulates hospitality REITs on the Saudi Exchange (Tadawul) — Saudi Arabia has 20 REITs with SAR 20 billion+ in assets and 6.61% average yields. The Non-Saudi Real Estate Ownership Law (effective January 22, 2026) enables direct property ownership by foreign investors, eliminating the need for local partnership structures.
Investment Risk Factors
Key risks: oversupply risk as 300,000+ rooms pipeline approaches delivery (mitigated by 150M visitor target), Mukaab timeline uncertainty for New Murabba hotels (district continues), labor constraints under Saudization, and regional competition from UAE and Oman luxury hospitality. IMF Saudi Country Report fiscal concerns and oil price volatility affect government tourism spending. Hotel development costs in Saudi Arabia are 15–25% above global averages due to imported materials and labor.
Conclusion
Saudi Arabia's hospitality sector — 122M visitors, 300,000+ room pipeline, SAR 3.57B branded residence market, 7–9% hotel yields — offers institutional investors compelling risk-adjusted returns. New Murabba's 10,100 rooms and AMAALA's ultra-luxury cluster represent the premium segment. Track via Vision 2030 AI, Saudi Tourism Authority, and Saudi Tourism Development Fund.