Riyadh, Jeddah adding 2,380 hotel rooms by end of 2025

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Riyadh skyline

Riyadh and Jeddah are set to bring 2,380 new hotel rooms to market in the second half of 2025, according to JLL’s latest Hotels Market Dynamics report.

This pipeline builds on steady growth in the first half of the year, when both cities expanded at a controlled yet consistent pace.

In Riyadh, 690 rooms were added during H1, lifting total supply to 49,100 keys, including the Middle East debut of boutique brand Kimpton, located in the heart of the King Abdullah Financial District.

Another 1,080 rooms are expected to be delivered before year-end, with notable openings anticipated from the Conrad Riyadh Laysen Valley and Renaissance Riyadh Hotel.

New projects are increasingly being developed away from city centres, as international operators including Marriott, Hilton, Accor and IHG continue to drive high-quality supply growth, JLL reports.

Kimpton KAFD Riyadh

Jeddah followed a similar trajectory, adding 750 rooms in the first half to reach 18,760 keys. This includes the addition of Rixos Obhur Jeddah with 250 rooms, alongside a further 1,300 rooms expected to open in the coming months.

Among these is the highly anticipated Raffles Jeddah, slated for launch later this year.

The momentum in both cities is supported by strong event-driven demand, including Jeddah Season, Formula 1 and Saudi Pro League fixtures, stimulating both corporate and leisure travel.

Rixos Obhur Jeddah

The holy cities are also preparing for significant growth. Makkah and Madinah, which maintained stable inventories of 154,590 and 60,170 rooms in the first half, are scheduled to add 5,590 and 710 keys respectively in the second half of 2025.

Hotel performance varied across the kingdom in the first half of 2025.

Average Daily Rate (ADR) climbed 1.9% year-on-year to SAR 821.8, with revenue per available room (RevPAR) edging up 0.2% to SAR 512.3, while occupancy slipped 1.7 percentage points to 62.3%.

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Makkah recorded the strongest results, with ADR up 7.1% and RevPAR rising 3.1%, even as occupancy fell. Madinah posted a 2.7% RevPAR increase, while Riyadh faced the sharpest downturn with both occupancy and ADR declining, and Jeddah saw occupancy edge higher despite a 7.1% fall in ADR.

According to Taimur Khan, Head of Research at JLL Middle East, the current shifts point to “significant transformation, driven by ambitious government initiatives and a strategic focus on diversifying the kingdom’s tourism offerings.”

The report notes that following record arrivals in 2024, the sector is now entering a new phase defined by a broader supply map, rising leisure demand and sustained investor interest.

With Saudi Arabia aiming to grow tourism’s GDP contribution from 3% to 10%, create one million jobs, and attract 150 million visitors annually by 2030 — well above its original Vision 2030 target — the long-term outlook for its hospitality industry remains highly positive.

For more information, visit jll.com/ksa-hospitality