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MIDDLE EAST MOMENTUM 717 Projects — a record regional pipeline 65% Hotel occupancy, YTD to March 2026 $209 ADR, up 5% year on year 177,110 Rooms planned across the Middle East 91 Hotels forecast to open during 2026 Sources: STR/CoStar; Lodging Econometrics
ROOM FOR 150 MILLION Saudi Arabia is building a hotel market on an exceptional scale. Knight Frank puts current inventory at 176,260 rooms, with 35% in the luxury and upper-upscale categories. A further 105,225 rooms are under construc- tion or in advanced planning, taking potential supply beyond 281,500 rooms by 2030. Lodging Econometrics counts 385 projects and 105,598 rooms in the national pipeline, up 21% and 24% respectively year on year. That gives Saudi Arabia more than half of all hotel projects planned across the Middle East and close to 60% of the region’s pipeline rooms. Demand is growing alongside supply. Saudi Arabia welcomed 37.2 million domestic and international visitors in the first quarter of 2026, an 8% annual increase, with expenditure reaching SAR 82.7 billion ($22.1 billion). Domestic tourism rose 16% to 28.9 million visitors, while domestic spending increased 8% to SAR 34.7 billion ($9.3 billion). Ramadan and Eid demonstrated the depth of that domestic market. The holiday period generated 10 million domestic
trips and SAR 10.2 billion ($2.72 billion) in spending, while hotels in Makkah reached 97% to 100% occupancy. Jeddah resorts averaged 85% and AlUla resorts 77%. THE PILGRIMAGE POWERHOUSE Religious travel gives Saudi Arabia one of the world’s largest and most dependable hotel demand bases. The 2026 Hajj welcomed 1.71 million pilgrims, 2.2% more than the previous year, including around 1.55 million international visitors from 165 nationalities. The kingdom aims to receive 30 million Hajj and Umrah pilgrims annually by 2030. Knight Frank identifies more than 218,000 hotel rooms, branded residences and serviced apartments planned across major developments in Makkah and Madinah. Rua Al Haram, Rua Al Madina, Dar Al Hijrah Pilgrim City, Knowledge Economic City, Masar Makkah and Thakher Makkah will combine accommodation with retail, transport and wider urban infrastructure. The immediate development pipeline is substantial too. Makkah has 34 projects
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