Saudi Arabia set to add 94,500 hotel rooms: Knight Frank

Riyadh city

The number of hotel rooms in Saudi Arabia is set to expand significantly from the current stock of 171,650 keys, with around 94,500 additional rooms under construction or at advanced planning stages, according to a report by property consultancy Knight Frank.

Around 358,000 hotel rooms are planned across the Kingdom, of which 94,000 keys are either under construction or at advanced planning stages, highlighting the scale of the medium to long-term pipeline, it added.

Meanwhile, the average daily rate for hotel rooms across the country increased by 0.3% to SAR 746 ($ 199) between January and August 2025, while occupancy rose to 61%, pushing revenue per available room (RevPAR) up by 1.3%.

Riyadh is expected to see a 19% increase in quality rooms to 30,330 keys by 2027. Elsewhere, Makkah and Madinah have particularly large hotel pipelines, with major projects expected to add more than 252,000 rooms, 64% of which will be in the four- and five-star categories, Knight Frank said.

The report also highlighted that Makkah is the top destination overall (42%). However, for Saudis with a monthly income of more than SAR 80,000, Riyadh is the number one draw (61%). It noted that, beyond the major cities, domestic tourists are increasingly exploring regional destinations. Abha and Taif are especially popular among nationals at 24% and 22% respectively.

According to Knight Frank, 60% of the Kingdom’s 171,650 hotel rooms fall within the luxury, upper upscale and upscale categories. Looking ahead, the proportion of luxury, upper-upscale, and upscale rooms is projected to reach 76% of the country’s total room count by 2030.

This reflects demand dynamics, with 83% of travelers preferring four- or five-star hotels, it added.

Serviced apartments are the second most popular accommodation type, after hotels, with 22% of respondents favoring them. Resorts were preferred by 11%, an increase from 9% in 2023. At Red Sea projects, some 8,000 hotel rooms are expected by 2030, Knight Frank said.