Saudi Arabia anchors $90bn regional hotel pipeline
Arabian Post Staff -Dubai Saudi Arabia is driving a $90 billion hotel and resort development pipeline across the Gulf and North Africa, accounting for about 110,000 of nearly 200,000 rooms planned across the region, new HVS data show. The pipeline would expand the region’s existing hotel room supply by about 27 per cent, underlining the scale of investment continuing across major tourism markets…
Saudi Arabia is spearheading a $90 billion hotel and resort development pipeline spanning the Gulf and North Africa, according to HVS data. This pipeline would increase the region's hotel room supply by around 27%, bringing total rooms to nearly 200,000. Currently, 88,000 rooms are under construction, with another 25,000 in final planning.
Over 55% of upcoming hotels are set to be operational by 2030. Saudi Arabia accounts for about half of the Middle East's development pipeline, with projects centered in Riyadh, Makkah, Madinah, Diriyah, NEOM, the Red Sea, and Amaala. The projects encompass large pilgrimage hotels, luxury resorts, branded residences, and upper-midscale accommodations, broadening the market that has historically favored premium properties.
Hala Matar Choufany, HVS president for the region, emphasized that the development pipeline remains one of the most significant globally, reflecting ongoing investor confidence in the long-term potential of tourism and hospitality. The data, released ahead of the Future Hospitality Summit World in Dubai, shows that hotel construction will proceed in stages rather than through a single wave of openings.
Delivery timelines vary by market, with Saudi Arabia's large projects spanning the next decade, while the UAE's pipeline is slated for completion between 2028 and 2030. Egypt's development cycle is more extended, particularly in Cairo, the North Coast, and Red Sea destinations, with approximately 42,000 rooms in the pipeline. The market's maturity is shifting focus towards developments that broaden visitor appeal rather than just increasing room numbers.
Financing for hospitality projects is diversifying, with more funds directed towards mixed-use schemes, branded residences, and phased developments to enhance project economics and risk mitigation. Capital is increasingly being allocated to mixed-use schemes, branded residences, and phased developments in Saudi Arabia, as developers seek to diversify revenue streams and support financing through government-backed investment vehicles and public-private partnerships.
Luxury and upper-midscale hotels continue to dominate the upcoming supply, reflecting sustained investor demand for premium resorts, branded products, and integrated destinations.
Written by urgent.news from Arabian Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
