THE ENGINE: HOTEL MARKET •
GLOBAL BRANDS IN SAUDI ARABIA
100
Marriott
hotels open and in the pipeline
21 48 29
Hilton
open and 83 in development
IHG
open and 62 in development
Radisson
open and 17 in development
100
Wyndham
Super 8 hotels planned
48
Accor
open and 47 in development
and rates aligned with domestic budgets. There is a similar opening in corporate and project accommodation. The $1 billion AYARA platform plans 50 branded business hotels and between 5,000 and 7,000 rooms by 2029, targeting Riyadh, Jeddah, Dammam, NEOM and the Red Sea region. Its intended guests include consultants, project teams, corporate travellers and employees relocating to the kingdom. Branded economy hotels, extended-stay accommodation and serviced apartments also have room to grow along highways, in pilgrimage corridors and in regional commercial centres. Wyndham’s agreement for 100 Super 8 hotels targets major cities, Makkah, Madinah, Al Khobar and Dammam, as well as urban, transit and highway locations. The company says economy and midscale properties account for only 6% of the national pipeline. International groups are beginning to respond in secondary cities. Accor’s agreement with Amsa Hospitality includes economy and midscale hotels in Ha’il, Jubail, Taif, AlUla, Tabuk and Jazan, while Hilton has signed developments in Abha, Buraidah, Dammam and Al Ahsa. MORE BRANDS, MORE CHOICE Global hotel companies continue to expand across the kingdom, but their portfolios are becoming broader in both location and price point. Marriott has reached 100 properties open or in the pipeline and
operates 44 hotels with more than 11,000 rooms. Its latest agreements include JW Marriott, Element, Four Points and the kingdom’s first Four Points Flex by Sheraton, adding more than 2,700 rooms across Jeddah, Makkah and Madinah. Hilton operates 21 hotels and has another 83 in development, representing more than 22,000 planned rooms and $8 billion in owner investment. Its pipeline spans luxury, lifestyle, full- service and premium-economy brands, including Spark by Hilton in Makkah and new properties in Abha, Buraidah, Dammam, Jizan and Al Ahsa. IHG has 48 hotels open and 62 in the pipeline, with brands ranging from Holiday Inn and Staybridge Suites to Six Senses, Regent and Hotel Indigo, while Accor will double its presence in the kingdom, with 48 current properties and 47 more planned across a multitude of brands. Radisson operates 29 hotels with 17 under development and is targeting 100 properties in total by 2030, while Four Seasons is planning six hotels and three residential developments across the Red Sea, AMAALA, Madinah, Jeddah, Diriyah and NEOM. Looking ahead, luxury hotels will remain important to Saudi's appeal, particularly across the Red Sea, Diriyah, Riyadh, Jeddah and the Holy Cities, but the next growth phase will be judged by breadth: whether growth delivers the right hotel, at the right price, and in the right place.
thin supply remains in several regional markets. As of mid-2025, Taif had around 10,200 licensed keys across hotels and other accommodation, Abha and Khamis Mushait around 9,900, Tabuk 4,550, Jazan 4,300 and Hail 3,250. Al-Baha had about 1,500 keys and Al Ahsa just over 1,000, compared with almost 47,600 in Riyadh and more than 30,000 in Jeddah. The clearest opportunity lies in good- quality accommodation at attainable prices. Knight Frank found that 44% of domestic travellers are willing to spend no more than SAR 525 ($140) a night, although 83% of hotel users prefer four- or five-star properties. The market therefore needs three- and four-star hotels that combine reliable standards with family-sized rooms, strong food and beverage, good locations
SPOTLIGHT RIYADH | 43
Made with FlippingBook Digital Proposal Creator