Saudi Arabia to develop 60 motels in midscale hospitality push

Saudi Arabia is set to launch a network of 60 motels across the kingdom, marking a significant step in its efforts to diversify accommodation offerings beyond the luxury segment.

 

The nationwide rollout forms part of a new joint venture between Turkish developer Emrina Inc, China Railway Assembly Xinjiang Construction and Development Company, and Saudi-based Le Park Concord Company, a leading player in the kingdom’s real estate and hospitality sectors. The partners said the motels would be distributed across “strategic areas” and designed to deliver modern, sustainable and high-standard lodging for both domestic and international visitors.

 

The initiative aligns with Saudi’s broader strategy to rebalance its hospitality landscape, as policymakers and operators work to expand midscale, premium‑economy and budget accommodation in response to accelerating travel demand.

 

According to Knight Frank, as of spring 2025, 61% of Saudi Arabia’s 167,500 hotel keys sit in the luxury, upscale or upper‑upscale categories. However, the development pipeline – set to add another 100,000 keys by 2030 – shows a clear shift, with about 22% of new rooms (approximately 21,900 keys) expected to fall within the midscale and economy brackets.

 

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New concepts range from economy roadside motels and modular smart builds to lifestyle mid‑market hotels in emerging business districts, catering to middle‑income travellers, pilgrims and domestic tourists seeking quality yet affordable stays.

 

Wyndham Hotels & Resorts is spearheading the economy segment with plans to open around 100 Super 8 by Wyndham hotels across Saudi over the next decade, under an agreement with Le Park Concord. The first Super 8 is slated to open in 2026, with additional sites targeted in Riyadh, Jeddah, Makkah, Madinah and the Al Khobar–Dammam corridor. Modular, sustainability‑focused construction methods will be used to accelerate delivery.

 

Hilton is also expanding its footprint across the midscale and focused‑service categories, with brands such as Spark by Hilton, Hampton by Hilton and Hilton Garden Inn now accounting for roughly one‑third of its Saudi pipeline. Recent signings include new Hampton and Hilton Garden Inn properties in Jeddah, Jazan and Abha, as well as at the Neom Community. In Makkah, Hilton is developing what is expected to be the world’s largest Hilton Garden Inn, offering 1,560 rooms designed to serve mass pilgrimage demand.

 

Meanwhile, IHG Hotels & Resorts plans to add 50 hotels and 15,000 rooms across the kingdom by 2030, strengthening its midscale and upper‑midscale offering. The group is introducing Holiday Inn Express and its new midscale brand Garner to Saudi Arabia, targeting cost‑conscious business and leisure travellers.

 

On the lifestyle front, UAE‑founded Rove Hotels is entering the Saudi market with a property on Riyadh’s Olaya Street, in partnership with Rafal Real Estate Development. Additional sites are under consideration in line with Expo 2030‑related demand, catering to next‑generation, value‑driven travellers.

 

For more information, visit www.emrina.com