Saudi Arabia records 40% surge in hospitality supply in Q3 2025

Saudi Arabia’s hospitality sector continues its upward trajectory in 2025, with the number of licensed hospitality accommodations rising by 40.6% in Q3, while the tourism workforce increased 6.4%, according to data released by the General Authority for Statistics (GASTAT).​

The kingdom’s registered hospitality facilities reached 5,622 by the end of September, with hotels accounting for 47.4% of that total and serviced apartments and other accommodations making up the remaining 52.6%. This expansion reflects Saudi’s accelerating investment in tourism infrastructure, supported by a strong pipeline of new hotel openings across Riyadh, Jeddah, AlUla and the Red Sea.

In Riyadh, Kimpton made its Middle East debut with a new property in the heart of the King Abdullah Financial District, while Radisson Blu Hotel opened with 171 rooms in the Sahafa District. In Jeddah, Rixos opened Saudi’s first “true all-inclusive resort experience”, overlooking the Red Sea with 250 accommodations.​

Employment across tourism activities also climbed, with the total workforce surpassing one million (1,009,691) – a 6.4% year-on-year increase from 948,629 in Q3 2024. Saudi nationals represented nearly a quarter (24.3%) of the workforce, underscoring the sector’s growing contribution to job creation as the kingdom works towards generating 1.6 million tourism-related jobs and attracting 150 million annual visitors by 2030.

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Hotel performance indicators showed healthy momentum, with average room occupancy reaching 49.1%, up 2.9 percentage points from the same period last year, signalling resilient demand across major cities. In contrast, serviced apartments and other accommodation types recorded a slight year-on-year dip in occupancy to 57.4%, compared to 58% in Q3 2024.​

Average daily rates (ADR) revealed mixed trends, as hotel ADRs edged down by 3.6% to SAR 341 (US$90.9), while serviced apartments registered a 4.1% increase to SAR 208. The average length of stay in hotels slipped marginally to 4.1 nights, compared to 4.2 nights a year earlier, while for serviced apartments it stood at 2.1 nights, marking a slight 0.2% decrease.​

Looking ahead, Knight Frank estimates that the kingdom’s quality hotel room supply will increase by 29%, from 159,790 rooms in mid‑2024 to around 205,500 by 2026, signalling substantial new openings over the next two years.

Among the anticipated openings this year, Red Sea Global is set to deliver eight resorts at wellness-focused destination Amaala, including properties from Six Senses, Rosewood and The Ritz-Carlton, alongside several new resorts on Shura Island. Riyadh will also welcome a wave of new luxury entries, with the debut of the W and Mondrian brands, an eco-focused retreat (Basqiat by Mantis) and a palace-turned-hotel in the form of The Boutique Group’s Red Palace.

For more information, visit stats.gov.sa