Saudi Arabia’s hospitality sector is in the midst of transformation, driven by an expanding tourism market that now reaches well beyond the religious and business segments that once defined it. As guest expectations evolve and new destinations emerge, we examine what lies ahead for hotel development across the kingdom, with insights from senior industry executives.
A market in transformation
Saudi Arabia’s economy is developing at an unprecedented pace, driven forward by its far-reaching roadmap, Vision 2030. Significantly, tourism is playing a central role in that growth. New hotels are opening and development pipelines are stretching well into the next decade. As part of this growth story, international brands are expanding their portfolios to meet rising demand. “The narrative has shifted,” said Hani AlKhouly, regional general manager for Accor in Central and East Saudi Arabia. “Instead of Saudi Arabia coming to the world, the world is coming to Saudi Arabia.”
New destinations, new experiences
The kingdom is welcoming both new and repeat visitors in growing numbers. Many are traveling to established hubs, such as Riyadh, Jeddah and the holy cities. However, rising numbers are also choosing destinations that barely registered on the tourism map a few years ago. Secondary and emerging destinations, including the Red Sea, AlUla and Abha, alongside the southern regions, are drawing significant interest. As a result, hotel development is increasingly becoming aligned to destination-making rather than standalone properties.
Together with the kingdom’s geographic expansion, traveler expectations are rapidly evolving. Rising demand for authentic cultural encounters, in particular, is driving rapid growth in eco and agri-tourism. “People are no longer traveling just for marble lobbies and chandeliers,” said Osama Alshahrani, COO of Maqtan. “They want culture, food and real human connection.”
This appetite for authenticity is also reshaping how established operators approach their offerings. Extended-stay concepts and locally rooted lifestyle brands, for example, are proving popular, meeting demand from travelers seeking longer, more immersive experiences.
Saudi talent: the industry’s greatest asset
The sector’s expansion has thrown a spotlight on the need to develop local talent to support this growth. Industry leaders acknowledge that challenges in recruitment and training exist. However, they agree that with hospitality embedded in local culture, sourcing Saudi talent is not one of them. “They have hospitality in their blood,” noted Alshahrani. “It’s in their genes.”
According to industry leaders, the work lies in channeling that quality into professional hotel operations. “The question is how to bring that into a hotel operation and then be efficient with it,” said Maher Abou Nasr, managing director for IHG Hotels & Resorts in Saudi Arabia.
Consequently, operators have invested in programs across the sector, reflecting a shared commitment to building a sustainable local workforce. Topics range from leadership development and women’s empowerment to mentorship.
Building for the long term
High-profile global events set to take place in the kingdom are major industry talking points. Top of this list are Expo 2030 and the 2034 FIFA World Cup, which will undoubtedly drive infrastructure and sectoral investment. However, operators and investors view them as waypoints in a longer journey rather than the destination itself. The consensus is clear: hotel development is being driven by sustained demand, not event deadlines. “We’re not building hotels for the World Cup,” said Abou Nasr. “We’re building hotels for the future of demand that we see coming to Riyadh or to Saudi Arabia in general.”
That long-term thinking extends to the investor community itself. Today’s owners are well-traveled, arriving with clear ideas about quality, cultural authenticity and the experiences they want to create. This convergence of vision is reshaping how operators and owners work together, according to AlKhouly. Underpinning it all is sustainability—not as a separate agenda, but woven into how the industry operates and grows.
Insights from HORECA Talks 2025 at HORECA Riyadh, co-organized by Hospitality News Middle East and Hodema Consulting Services. Session moderated by Nada Alameddine, managing partner at Hodema Consulting Services Middle East & Africa.
