Riyadh, Saudi Arabia — Saudi hotel occupancy Q1 2025 reached 63%, marking a 2.1 percentage point increase compared to 60.9% in Q1 2024. The figures, released by the General Authority for Statistics, reflect ongoing growth in the Kingdom’s hospitality sector, a key component of Saudi Arabia’s Vision 2030 tourism strategy.
The report shows a mixed performance across accommodation types. While hotel occupancy rose, the occupancy rate for serviced apartments and other hospitality facilities declined to 50.7%, down from 54.5% during the same period last year.
Saudi Hotel Sector Q1 2025 Sees Major Growth in Facilities and Supply
Saudi Arabia’s licensed hospitality facilities recorded significant growth by the end of Q1 2025. The total number of facilities reached 4,988, a 78% year-on-year increase. This includes 2,414 hotels, up 67.5%, and 2,574 serviced apartments and other accommodation types, which grew by 89.1%.
Despite the higher supply, average daily room rates showed varied trends:
- The average hotel room rate stood at SAR 477, down 3.4% from SAR 494 in Q1 2024.
- The average daily rate for serviced apartments and other facilities increased by 7.2%, reaching SAR 209 compared to SAR 195 last year.
Guest stay durations remained steady in hotels, averaging 4.1 nights. However, the average stay in serviced apartments fell to 2.1 nights, reflecting a 4.5% decline.
Saudi Tourism Employment Trends Reflect Hospitality Expansion
Total employment in tourism-related activities reached 983,253 jobs, a 4.1% increase compared to Q1 2024. Of these positions, 24.8% were held by Saudi nationals, while non-Saudis accounted for 75.2%.
By gender, men represented 86.8% of the workforce, while women accounted for 13.2%. Despite employment growth, tourism’s share of total economic employment declined slightly to 5.4%, down from 5.7% last year. Within the private sector, tourism jobs made up 8.1%, a drop from 8.7% in Q1 2024.
The rise in hotel occupancy, hospitality investments, and employment levels reflects Saudi Arabia’s continued progress toward expanding its tourism industry. However, maintaining a balance between supply growth and occupancy performance remains a key consideration for the sector.
The Saudi Standard’s View: Expansion Brings Opportunity and Complexity to Hospitality
Saudi Arabia’s hospitality sector is growing at an unprecedented pace. The sharp rise in hotel and accommodation facilities reflects national efforts to diversify the economy, expand tourism, and attract domestic and international visitors.
The increase in hotel occupancy signals that demand is keeping pace with much of this supply. However, the decline in serviced apartment occupancy and the slight dip in tourism’s share of overall employment reflect the challenges of rapid growth.
Saudi hotel occupancy Q1 2025 trends highlight the opportunities and complexities of building a world-class tourism sector. Maintaining service quality, balancing supply, and ensuring sustainable job creation will be critical as Saudi Arabia’s hospitality industry continues to evolve under Vision 2030.
Explore more in Saudi tourism industry updates
Read about the Saudi hospitality industry growth under Vision 2030
