Data from ASAP Business Partner STR Global, Saudi Arabia has more than 64,000 rooms in the pipeline across 187 hotel projects, more than three-quarters of the existing 84,500+ rooms in the country.
40,000 rooms are already in construction on 94 projects, with Makkah due the most rooms at more than 23,000 under construction and a further 32,000 in the pipeline. Jeddah and Riyadh expect around 10,000 rooms at various stages.
This is in line with the country’s Vision 2030 initiative aimed at reducing the country’s dependence on oil in favour of tourism, and will complement the 2019 Red Sea beach resort project.
Occupancy across the country fell in 2017 but is looking healthy so far in 2018 and expected to recover as oil prices rise.