Saudi Arabia’s Tourism Investment Drive Opens Doors for Hotel Groups

Saudi Arabia’s ambitious plans for substantial investments in tourism could create lucrative opportunities for hotel groups, according to HNN’s Terence Baker’s report from the Future Hospitality Summit in Riyadh. With a current shortage of hotel supply, the country aims to address this issue through its various megaprojects.

By the end of 2026, Saudi Arabia plans to spend approximately $26 billion on five “giga-projects,” aiming to stimulate tourism in the country. The officials are hopeful that these investments will attract visitors from around the world.

Ahmed Al Juhani, CEO of Rua Al Madinah Holding, a subsidiary of the country’s sovereign wealth Public Investment Fund, revealed plans for a project that includes 47,000 hotel rooms with stunning views of the Holy Mosque of the Prophet and the Islamic Civilization Village. These developments are part of the country’s financed pilgrimage program. Al Juhani expressed that the opportunity for hotel groups is significant, as there is a clear shortage of rooms in Madinah.

“From two stars up to luxury, 2 million visitors per year and international, not only domestic, visitors,” Ahmed Juhani said. “We have signed 4.4 billion Saudi riyals ($1.17 billion) of projects, including eight Marriott-branded hotels and three from Hyatt. The shortage of rooms in Madinah is clear, so the opportunity is there.”