Medina, Saudi Arabia — Medina hotel occupancy hit a national record of 74.8% in Q2 2024, according to a report by the Medina Chamber of Commerce. The surge reflects a sharp rise in visitor demand and presents strong potential for hospitality investment in Medina.
Serviced apartment demand also grew, reaching a 48.7% occupancy rate. These figures underscore increased travel activity, particularly from pilgrims and religious tourists. Meanwhile, the average hotel room rate in Medina was SAR 998.8—outpacing other major cities, including Riyadh and Mecca.
The report noted that travelers continue to favor premium hotel experiences over serviced apartments. As a result, developers are being urged to improve mid-range options and introduce smarter, more affordable lodging solutions. New demand is also being driven by digital booking tools and growing interest in smart hotel experiences.
Additionally, Medina’s rich cultural landscape—with more than 1,500 historic sites—has fueled tourism sector growth. This includes opportunities in museum development, cultural centers, and eco-friendly accommodations aligned with sustainable tourism trends.
The number of commercial registrations in hospitality and travel services rose from 2,700 in January 2024 to 3,381 by December. This growth is tied to government support for Hajj and Umrah accommodation, public infrastructure investment, and private sector incentives.
Moreover, demand is climbing for travel agencies, tour operators, and event venues. The city is increasingly attractive for business tourism, driven by conference infrastructure and a rise in green tourism ventures. As Vision 2030 progresses, Medina hotel occupancy is expected to remain strong and continue drawing investor interest.
