Saudi Arabia’s hotel pipeline accelerates with new signings across key destinations in Q1 2026
01 May. 2026
Tourism patterns are offering a clearer signal of how demand is shaping Saudi Arabia’s next phase of hotel development, with early 2026 signings reflecting where that growth is beginning to concentrate.
Recent data shows hotel searches in Makkah and Madinah rose by 20.67 percent and 25.16 percent, with Umrah continuing to drive travel alongside family-related movement and earlier planning for Eid.
This demand is feeding directly into development activity.
According to Knight Frank, Saudi Arabia’s existing hotel supply stands at 171,650 rooms, with a further 94,500 keys under construction or in advanced planning. Tourism contributed SAR444.3 billion to the economy in 2024, accounting for 11.5 percent of GDP, while visitor targets have been raised to 150 million annually by 2030.
Against this backdrop, hotel signings recorded in the first quarter of 2026 across Taif, Dammam, Hail, Jeddah, Makkah, Madinah and Diriyah offer an early indication of how operators are positioning their portfolios in response to both concentrated demand and emerging travel patterns.
ENVI Al Shafa, Taif
Signed: January 2026
ENVI Lodges has signed an agreement to develop ENVI Al Shafa, a mountain lodge located in the hills near Taif, marking the brand’s entry into Saudi Arabia’s high-altitude hospitality segment. Set at more than 2,000 metres above sea level, the project introduces an outdoor lodging concept shaped by cooler year-round temperatures and a focus on wellness-led stays.
The development will comprise a collection of one-, two- and three-bedroom villas, each positioned to overlook surrounding valleys and designed to integrate with the natural landscape. Shared spaces will include a central lounge and a restaurant centred around an open-flame grill, with views across the mountains.
Food and beverage will follow a Mediterranean farm-style approach, supported by a cooking studio hosting sessions on regional recipes and nutrition. Wellness facilities will include structured programmes across age groups, alongside a garden used for both meditation and on-site sourcing.
Additional features include an entertainment hub, pottery workshop and spaces for private retreats and corporate gatherings. Located within reach of Jeddah, Mecca and Taif International Airport, the lodge is positioned to support both domestic and international demand.
Tapestry Collection by Hilton, Dammam
Signed: January 2026
Aleph Hospitality has secured the Tapestry Collection by Hilton brand for an upcoming hotel in Dammam, marking the introduction of the brand to the city. The 84-key property is owned by AREA Investment and Real Estate and is scheduled to open in 2027.
The agreement includes a franchise arrangement with Hilton and a management contract with Aleph Hospitality, reinforcing the operator’s partnership with Hilton and expanding its presence in Saudi Arabia. The project represents Aleph Hospitality’s third Tapestry Collection by Hilton hotel under management.
The hotel will form part of Hilton’s Tapestry Collection portfolio, which focuses on independent boutique properties that reflect their local context while operating under Hilton’s global systems. Once operational, the property will participate in the Hilton Honors loyalty programme.
Located in Dammam, the hotel is positioned to serve both business and leisure travellers, supporting the city’s role as a commercial and lifestyle hub within the Eastern Province.
Centro Hail, Hail
Signed: January 2026
Rotana has signed an agreement with Alkhorayef Investment and Development Co. and the Tourism Development Fund to develop Centro Hail, marking the group’s entry into the northern Saudi market. The 175-room property is positioned as a lifestyle-focused hotel targeting both business and leisure travellers.
Located in Hail, the project introduces Rotana’s next-generation Centro concept to Saudi Arabia, with a focus on design efficiency, functional layouts and social interaction. Planned features include open social areas and flexible co-working spaces designed to support blended travel patterns.
The signing forms part of Rotana’s wider expansion strategy in the Kingdom, where it currently operates and develops 25 hotels representing approximately 5,600 rooms. The project also reflects continued investment in secondary cities as operators expand beyond established markets such as Riyadh, Jeddah and Makkah.
Marriott International x Al Qimmah Hospitality portfolio, Saudi Arabia
Signed: January 2026
Marriott International and Al Qimmah Hospitality have signed agreements to develop five hotel projects across Jeddah, Makkah and Madinah, adding more than 2,700 rooms to Saudi Arabia’s pipeline. The portfolio spans multiple segments, from luxury and extended stay to midscale and entry-level offerings.
The developments include:
- JW Marriott Jeddah, The Apartments (Jeddah): A 356-unit serviced apartment development on Jeddah Corniche Road, designed to support extended stays with residential-style layouts and supporting leisure and business facilities.
- Four Points by Sheraton Shesha, Makkah: A 1,030-room hotel located near Masjid Al Haram, positioned to accommodate high pilgrimage demand.
- Four Points by Sheraton Madinah King Fahd Road (Madinah): An 800-room property near Masjid Al Nabawi, serving religious and domestic travel segments.
- Element Madinah Sultana Road (Madinah): A 136-key extended-stay hotel with studio-style accommodation and in-room kitchens.
- Four Points Flex by Sheraton Madinah Hijrah Road (Madinah): A 450-room hotel marking Marriott’s entry into the midscale segment in Saudi Arabia.
The agreement reflects continued investment in high-demand cities driven by religious tourism and domestic travel.
Aedas x Diriyah Company, Diriyah
Signed: January 2026
Aedas has partnered with Diriyah Company to deliver a portfolio of hospitality projects within Diriyah, contributing to the development of the destination as a cultural and lifestyle hub. The agreement spans four hotel assets within the wider Diriyah masterplan.
The developments include:
- The Oberoi Wadi Safar: A landscape-integrated retreat drawing on Najdi agricultural heritage, with villas distributed across the terrain.
- Four Seasons Hotel Diriyah: A 150-key property organised around clusters of traditional houses, responding to topography and views.
- Capella Diriyah: A 100-key hotel referencing fortress typologies through courtyards and layered spatial transitions.
- Orient Express Diriyah: An 86-key hotel structured around courtyards and a circulation spine inspired by traditional souq layouts.
The portfolio reflects ongoing investment in Diriyah’s hospitality offering as part of its long-term development strategy.
Trump International Golf Club and Hotel, Wadi Safar, Diriyah
Signed: January 2026
Dar Al Arkan, Dar Global and The Trump Organization have confirmed the development of Trump International Golf Club, Wadi Safar, marking the first Trump-branded project within Diriyah. The development will span approximately 2.6 million square metres within the Wadi Safar masterplan.
The project will include:
- Trump International Hotel (Wadi Safar): A luxury hotel forming part of Diriyah’s high-end hospitality cluster.
- Trump International Golf Club (Wadi Safar): A championship golf course positioned as a central leisure component.
- Residential units: Premium residences overlooking the golf course and surrounding landscape.
The development is part of a wider US$10 billion agreement covering two Trump-branded projects in Saudi Arabia and is expected to be completed over the next four to five years.
Novotel Madinah North, Madinah
Signed: January 2026
Accor has signed an agreement with Arbah Taiba to develop Novotel Madinah North, expanding its presence in Saudi Arabia’s holy cities. The 200-room hotel is scheduled to open in 2028 and will be located minutes from Al Masjid an-Nabawi.
The property is positioned to serve religious, business and domestic travellers, responding to sustained demand for accommodation in Madinah. Facilities will include a restaurant, lobby lounge, fitness centre and four meeting rooms.
The signing forms part of Accor’s broader expansion strategy in the Kingdom, where it operates more than 40 hotels and maintains a pipeline of over 60 projects. The development contributes to ongoing efforts to increase room capacity in Madinah in line with tourism growth.
Swissôtel Jeddah Al Hamra, Jeddah
Signed: February 2026
Accor has signed an agreement with Arabian Hotels & Catering to reposition an existing property in Jeddah under the Swissôtel brand, marking the return of a long-established hotel within its portfolio in Saudi Arabia. The partnership centres on converting a property with more than 40 years of operational history into a Swissôtel-branded asset aligned with current market requirements.
Located in the Al Hamra district, the hotel has operated since 1984 and serves both business and leisure segments. Its repositioning is intended to align the asset with contemporary brand standards while retaining elements of its existing identity.
Once completed, Swissôtel Jeddah Al Hamra will offer 323 guestrooms, five dining outlets and an exclusive club lounge. The property will also include meeting and event facilities, including a ballroom designed to accommodate large-scale corporate and social functions.
A phased renovation programme is planned over 24 months, allowing operations to continue during the upgrade. The signing forms part of Accor’s broader expansion strategy in Saudi Arabia, where it continues to grow its presence across key urban markets including Jeddah.
Four Points by Sheraton Makkah Ibrahim Al Khalil, Makkah
Signed: March 2026
Aleph Hospitality has signed an agreement to operate the Diyar Al Khalidiya hotel in Makkah under the Four Points by Sheraton brand, expanding its presence in Saudi Arabia’s religious tourism market. The agreement includes a franchise partnership with Marriott International and a third-party management contract with Aleph Hospitality.
The 338-key property will operate as Four Points by Sheraton Makkah Ibrahim Al Khalil and is located on Ibrahim Khalil Street, within close proximity to the Great Mosque of Makkah and the Abraj Al-Bait Towers. The location positions the hotel to serve growing volumes of Hajj and Umrah visitors.
Aleph Hospitality assumed management of the property in August 2025, strengthening its collaboration with Marriott International and reinforcing its operational footprint in the Kingdom.
The signing reflects continued demand for accommodation in Makkah, with pilgrimage numbers expected to increase significantly by 2030. The property represents Aleph Hospitality’s third Marriott-branded hotel under management in Saudi Arabia and its sixth across the Middle East and Africa portfolio, supporting its strategy to scale in high-demand religious destinations.
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Source: Hotelier Middle East
