Saudi Arabia’s hospitality sector is the fastest growing among the 50 most populated countries in the world, reporting 73,057 rooms across the three phases of the hotel pipeline, and projecting a 67.1% increase in room supply over the next three years. This was revealed by STR’s AM:PM platform.
Of the total rooms in the pipeline as of 11 March, 16,965 were scheduled to come online over the duration of 2021. The 67.1% increase assumes completion of all projects in construction, final planning and planning.
- Makkah: 28,052 rooms (+81%)
- Saudi Arabia Regional: 13,996 (+80%)
- Riyadh: 13,165 rooms (+75%)
- Jeddah: 11,198 (+97%)
- Al Khobar & Dammam: 5,418 (+47%)
- Madinah: 1,228 (+7%)
“Saudi Arabia’s growth aspirations, along with the strength of other Middle East hospitality markets such as Qatar and the UAE, is further validation that the region continues to emerge as a global tourist destination,” said Philip Wooller, STR’s area director for the Middle East and Africa. “Such growth is a testament to the strength and prospectus of the nation’s strong cultural and economic resources.”
While a significant portion of Saudi Arabia’s pipeline activity is concentrated in Makkah (28,052 rooms under development), several other submarkets across the country are expected to increase hotel supply by 50% or more.