The tourism and hotel real estate boom is reshaping the hospitality economy

Architect Dr. Hisham Al Qasim

The tourism and hotel real estate sector in Saudi Arabia is witnessing remarkable growth, making it one of the fastest developing sectors within the national economy. This transformation comes as a result of a strategic vision aimed at enhancing tourism attractiveness and making the Kingdom a global destination that embraces millions of visitors annually, resulting in high demand for hotels, resorts and tourist residences in various categories.

The tourism and hotel real estate boom is reshaping the hospitality economy.

Renaissance in the hospitality market

Driven by the expansion of leisure and cultural activities and international events in the Kingdom's cities, demand for hotels at all levels, from luxury to midscale, has increased. Major projects have created innovative hospitality environments that offer upscale living experiences and integrate modern architectural design with local environmental elements.

New hotels today are being built in the UAE.

New hotels today offer not just accommodation, but an integrated experience based on:

New hotels today offer not just accommodation, but an integrated experience based on:

• Designs inspired by nature and the surrounding environment.
• Smart operating systems that utilize technology to manage services.
• Recreational, health and sports spaces that cater to visitors of different categories.

Support for short-term housing and domestic tourism

Serviced apartments and short-term residences are becoming increasingly popular, especially with families and young people looking for options for quick trips or weekend getaways. As domestic tourism grows, coastal cities and natural destinations are attracting new investments in resorts, glamping, and eco-lodges.

This expansion has created new demand for serviced apartments and short-term lodging, especially by families and young people looking for options for quick trips or weekends. This expansion has created ample opportunities for real estate developers to offer innovative hospitality products that cater to the modern needs of travelers.

Major Tourism Projects and Growth Drivers

<Mega tourism projects are a key driver of the sector's development; they not only redraw the tourism map but also create new paradigms for hospitality concepts, focusing on sustainability, nature conservation, and immersive experiences that reflect the identity of the place. These projects have boosted demand for international hotels, luxury resorts, beachfront residences, retail space and services attached to tourist destinations.

These projects have boosted demand for international hotels, luxury resorts, beachfront residences, retail space and services attached to tourist destinations.

Opportunities and Challenges for Developers

Despite rapid growth, the industry is facing a growing need for diverse hospitality facilities that cover all price points and cater to the growing demand in major cities and emerging destinations. Developers have the opportunity to develop:

Developers have the opportunity to develop:

Developers have the opportunity to develop

• Moderate-cost, high-quality hotels.
• Sustainable resorts powered by renewable energy.
• Hospitality solutions based on eco-experiences and cultural activities.

The tourism and hotel real estate sector is one of the pillars of Saudi Arabia's economic transformation, combining real estate investment, hospitality, entertainment, and culture into one ecosystem. As tourism projects continue to expand and visitor numbers rise, the sector looks set to remain one of the most active and opportunity-generating real estate sectors in the coming years.

@ArchHesham