Kostas Nikolaidis, senior account manager MEA for STR, maps out the Kingdom of Saudi Arabia’s remarkable transformation, fueled by its ambitious Vision 2030.

The kingdom’s mega projects

The recent openings of Six Senses Southern Dunes and Nujuma, a Ritz-Carlton Reserve at the Red Sea, mark an important milestone for Red Sea Global in Saudi Arabia. Further up the coast, Neom’s first resorts are also about to be unveiled, with a plethora of high-end brands, such as Four Seasons and Marriott Luxury Collection. Often developed with high sustainability standards, such hotel projects feature highly on the development agenda. Further inland across Saudi’s biggest urban centers, diversification beyond luxury is an emerging trend, with the acceleration of the upscale and midscale pipeline compared to past years. Brands such as Hilton Garden Inn and Holiday Inn Express now feature prominently in the hotel development pipeline.

In the pipeline

Saudi Arabia is growing at a blistering pace, driven forward by Vision 2030 and the progressive reforms of the past few years. Notably, the country aims to diversify its economy and increase tourism’s contribution to GDP. STR data confirms that Saudi Arabia’s hotel pipeline is not just the largest in the region, but also the third-largest of any country worldwide. Currently, the Kingdom has 102,279 rooms in its active pipeline, which positions it ahead of key traditional hotel development superpowers like the UK and Germany, which have 99,438 and 77,857 rooms underway, respectively.

Moreover, the anticipated growth in Riyadh is especially impressive. With 29,069 rooms currently under development, Saudi Arabia’s capital city boasts the largest hotel pipeline in the world, surpassing second-placed London. Furthermore, with upcoming mega-events such as Riyadh Expo 2030, the 2029 Asian Winter Games, and FIFA World Cup 2034, there is no doubt that these rooms will be required to meet high demand.