Saudi Arabia Hospitality Market Size, Share, By Type (Chain Hotels And Independent Hotels), By Segment (Service Apartments, Budget & Economy Hotels, Mid & Upper Mid-Scale Hotels, And Luxury Hotels), And Saudi Arabia Hospitality Market Insights, Industry Trend, Forecasts to 2035.
Industry: Consumer Goods
Saudi Arabia Hospitality Market Insights Forecasts to 2035
- Saudi Arabia Hospitality Market Size 2024: USD 48.8 Bn
- Saudi Arabia Hospitality Market Size 2035: USD 127.2 Bn
- Saudi Arabia Hospitality Market CAGR 2024: 9.1%
- Saudi Arabia Hospitality Market Segments: Type and Segment
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Saudi Arabia Hospitality Market Size, including hotels, resorts, serviced apartments, and other types of temporary housing for visitors, is expanding rapidly as Saudi Arabia develops into a global tourist destination for both religious and leisure travel. Rapidly expanding tourism is driving the availability of guest accommodation through increasing numbers of tourists visiting Saudi Arabia for religious and leisure purposes. Over time, these revenues will enable enough financial resources to maintain high occupancy levels in hotels and create demand for additional guest accommodation options. Vision 2030 is one of the greatest catalysts for growth, supporting efforts to diversify the economy. This strategy has significantly increased the number of international and domestic travellers who now use a range of accommodation options while developing the hospitality industry within Saudi Arabia.
The hospitality in Saudi Arabia are backed by government support, including Strategic Vision 2030 strategy of Saudi Arabia's future development, with creating jobs in the form of hotels and accommodations for the growing number of pilgrims each year through several programs and agencies. Business Hospitality Incentives Program, the Tourism Development Fund provides capital to create new hotels and tourism attractions as well as the capital investments related to new hotel construction and expansion, and a record number of more than 92000 hotel rooms in various stages of construction being built in Riyadh, Jeddah, and Makkah, and the government is committed to supporting the growth of Saudi Arabia's hospitality sector and to ensure there is sufficient capacity for pilgrims visiting for religious pilgrimage.
As technology advances, Saudi Arabia hospitality providers are now using technology-powered services for guests with AI, smart bookings, mobile app function, check-in systems used by guests with more advanced technology, the use of data analytics for improving efficiency and service quality of the hotel industry to grow rapidly.
Market Dynamics of the Saudi Arabia Hospitality Market:
The Saudi Arabia Hospitality Market Size is driven by the increased number of visitors to Saudi Arabia for Hajj and Umrah, the increased amount of local tourism, the change toward increased urbanization, rise in amount of disposable income, and the government Vision 2030 project, which aims to diversify the economy by increasing investment in the tourism sector and is expected to drive demand for hotels and tourism, increase hotel occupancy and spur further growth of the hospitality market.
The Saudi Arabia Hospitality Market Size is restrained by the challenge of balancing rapid expansion with workforce skill gaps, regulatory complexities, and the need to maintain service standards amidst accelerated development.
The future of Saudi Arabia Hospitality Market Size is bright and promising, with versatile opportunities emerging from the sustainable and eco-friendly hotel types as well as boutique and luxury segments, numerous secondary cities, and an expanding market for experiential tourism have placed Saudi Arabia's hospitality sector firmly in line with achieving a competitive position in the world tourism market for many years to come.
Saudi Arabia Hospitality Market Report Coverage
| Report Coverage | Details |
|---|---|
| Base Year: | 2024 |
| Market Size in 2024: | USD 48.8 Billion |
| Forecast Period: | 2024-2035 |
| Forecast Period CAGR 2024-2035 : | CAGR of 9.1% |
| 2035 Value Projection: | USD 127.2 Billion |
| Historical Data for: | 2020-2023 |
| No. of Pages: | 210 |
| Tables, Charts & Figures: | 95 |
| Segments covered: | By Type, By Segment |
| Companies covered:: | Marriott International Hilton Worldwide Holdings InterContinental Hotels Group Radisson Hotel Group AccorHotels Hyatt Hotels Corporation Rotana Hotels Wyndham Hotels & Resorts Four Seasons Hotels and Resorts And Others Key players |
| Pitfalls & Challenges: | COVID-19 Empact, Challenge, Future, Growth, & Analysis |
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Market Segmentation
The Saudi Arabia Hospitality Market share is classified into type and segment.
By Type:
The Saudi Arabia Hospitality Market Size is divided by type into chain hotels, and independent hotels. Among these, the chain hotels segment held the largest revenue market share in 2024 and is predicted to grow at a remarkable CAGR during the forecast period. Vision 2030’s tourism push, influx of international brands and travellers, massive infrastructure investment in new destinations, and high spending tourists all contribute to the chain hotels segment's largest share and higher spending on hospitality when compared to other type.
By Segment:
The Saudi Arabia hospitality market is divided by segment into service apartments, budget and economy hotels, mid and upper mid-scale hotels, and luxury hotels. Among these, the service apartments segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. The service apartments segment dominates because of high demand from business travellers, offering cost savings for longer stays, strong government support via new regulations promoting quality and standardization, and economic diversification goals.
Competitive Analysis:
The report offers the appropriate analysis of the key organisations/companies involved within the Saudi Arabia hospitality market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.
Top Key Companies in Saudi Arabia Hospitality Market:
- Marriott International
- Hilton Worldwide Holdings
- InterContinental Hotels Group
- Radisson Hotel Group
- AccorHotels
- Hyatt Hotels Corporation
- Rotana Hotels
- Wyndham Hotels & Resorts
- Four Seasons Hotels and Resorts
- Others
Recent Developments in Saudi Arabia Hospitality Market:
In November 2025, Red Sea Global announced the opening of AMAALA Triple Bay, an ultra-luxury wellness destination.
In July 2025, Hilton signed its first Tapestry Collection by Hilton, with more signings in the pipeline, including Hijla Hotel Abha.
In May 2025, InterContinental Hotels Group entered agreements with Ashaad Company for three properties in Jeddah & AI Khobar adding 1700+ rooms.
Key Target Audience
- Market Players
- Investors
- End-users
- Government Authorities
- Consulting and Research Firm
- Venture capitalists
- Value-Added Resellers (VARs)
Market Segment
This study forecasts revenue at the Saudi Arabia, regional, and country levels from 2020 to 2035. Decisions Advisors has segmented the Saudi Arabia hospitality market based on the below-mentioned segments:
Saudi Arabia Hospitality Market, By Type
- Chain Hotels
- Independent Hotels
Saudi Arabia Hospitality Market, By Segment
- Service Apartments
- Budget & Economy Hotels
- Mid & Upper Mid-Scale Hotels
- Luxury Hotels
Frequently Asked Questions (FAQ)
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What is the Saudi Arabia hospitality market size?Saudi Arabia hospitality market is expected to grow from USD 48.8 billion in 2024 to USD 127.2 billion by 2035, growing at a CAGR of 9.1% during the forecast period 2025-2035
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What are the key growth drivers of the market?Market growth is driven by the rising tourism from Hajj and Umrah pilgrims, growing domestic travel, urbanization and increase in disposable income, government’s Vision 2030 initiatives, which aim to diversify the economy through massive investments in tourism infrastructure, mega-projects, and relaxed visa policies, boosting hotel demand, occupancy rates, and overall hospitality sector growth
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What factors restrain the Saudi Arabia hospitality market?Constraints include the challenge of balancing rapid expansion with workforce skill gaps, regulatory complexities, and the need to maintain service standards amidst accelerated development
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How is the market segmented by type?The market is segmented into chain hotels and independent hotels.
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Who are the key players in the Saudi Arabia hospitality market?Key companies include Marriott International, Hilton Worldwide Holdings, InterContinental Hotels Group, Radisson Hotel Group, AccorHotels, Hyatt Hotels Corporation, Rotana Hotels, Wyndham Hotels & Resorts, Four Seasons Hotels and Resorts, and Others.
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Who are the target audiences for this market report?The report targets market players, investors, end-users, government authorities, consulting and research firms, venture capitalists, and value-added resellers (VARs).
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