Saudi Arabia is leading a major surge in hotel development across the Middle East, with 42,800 rooms under contract as of April 2025—the largest figure in the region. This growth is largely driven by the Kingdom’s giga projects and large-scale tourism initiatives under its ambitious Vision 2030 strategy, according to new data from CoStar.
The broader Middle East and Africa (MEA) region is also experiencing steady hospitality expansion, with 104,572 rooms currently under construction and 50,683 set to open in 2025.
Despite a flurry of hotel launches in recent years—especially in Dubai for Expo 2020 and in Qatar for the 2022 FIFA World Cup—the MEA hotel pipeline continues to grow.
“It’s encouraging to see the total pipeline expanding across the region,” said Kostas Nikolaidis, Senior Account Manager at STR. He noted that hotel demand grew 1.9% in the year-to-date period ending March 2025, indicating strong market fundamentals.
Saudi Arabia’s pipeline alone represents a year-over-year increase of 6,817 rooms. The Kingdom’s impressive momentum stems from ongoing mega-projects aimed at transforming it into a global tourism powerhouse. In April 2025, the number of rooms under construction in Saudi Arabia climbed to 11,450—up from 9,716 in April 2024.
Makkah and Medina are playing a critical role in this growth, with 17,646 and 20,079 rooms, respectively, in various stages of development. Other major cities like Riyadh and Jeddah are also contributing, with 3,485 and 3,156 rooms expected to be added in 2025.
Beyond Saudi Arabia, countries like the UAE, Qatar, and Egypt are also pushing forward with significant hotel development. Dubai alone is set to add 5,344 rooms next year, maintaining its status as a regional tourism hub.
Across the MEA region, despite global economic uncertainties, governments are doubling down on tourism as a key pillar of economic diversification. Backed by infrastructure investment and favorable policies, hotel developers and investors are showing strong confidence in the region’s long-term potential.