Saudi Arabia Luxury Hotel Market Size To Worth USD 2.8 Billion By 2033 | CAGR of 11.33%

Saudi Arabia Luxury Hotel Market Overview

Market Size in 2024: USD 1.1 Billion

Market Size in 2033: USD 2.8 Billion

Market Growth Rate 2025-2033: 11.33%

According to IMARC Group's latest research publication, "Saudi Arabia Luxury Hotel Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", The Saudi Arabia luxury hotel market size reached USD 1.1 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 2.8 Billion by 2033, exhibiting a growth rate (CAGR) of 11.33% during 2025-2033.

How AI is Reshaping the Future of Saudi Arabia Luxury Hotel Market

● Revolutionizing Personalized Guest Experiences: AI-powered systems are transforming luxury hospitality through intelligent room controls, predictive guest preferences, and virtual concierge services, enabling hotels to deliver hyper-personalized experiences with 65% of organizations worldwide using AI personalization by 2024, significantly enhancing guest satisfaction and loyalty across Saudi Arabia's premium properties.

● Optimizing Revenue and Dynamic Pricing: Machine learning algorithms are revolutionizing revenue management through real-time market analysis, competitor monitoring, and demand forecasting, with 70% of hotel revenue managers relying on AI tools for pricing decisions, enabling luxury hotels to maximize occupancy rates while optimizing average daily rates (ADR) that jumped 10% in upscale Dubai hotels in 2024.

● Enhancing Operational Efficiency and Staffing: AI-integrated workforce management platforms are transforming hotel operations through predictive scheduling, real-time task allocation, and automated workflow optimization, addressing the critical staffing challenges where 76% of hotels reported shortages in 2024, while maintaining the impeccable service standards expected by luxury travelers.

● Improving Sustainability and Energy Management: Artificial intelligence systems are revolutionizing energy consumption through smart building controls, predictive HVAC optimization, and automated lighting systems, reducing operational costs by 20-30% while supporting Vision 2030's sustainability goals and meeting the growing demand from eco-conscious luxury travelers for carbon-neutral hospitality experiences.

● Enabling Reputation Management and Sentiment Analysis: AI-powered analytics platforms are processing thousands of guest reviews across TripAdvisor, Google, and social media in real-time, identifying service trends and sentiment patterns that enable luxury hotels to proactively address concerns, maintain exceptional online reputations, and continuously elevate service quality standards across the Kingdom's expanding portfolio.

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Saudi Arabia Luxury Hotel Market Trends & Drivers:

Saudi Arabia's luxury hotel market is experiencing exponential growth driven by Vision 2030's ambitious tourism target of 150 million visitors by 2030, representing a 780% increase from 2019 levels, with the Kingdom welcoming nearly 100 million international visitors in 2024 and 4.2 million tourists specifically for entertainment and holidays in the first seven months of 2024 alone, marking a 25% year-over-year increase. The government's unprecedented $800 billion investment in tourism infrastructure is creating a pipeline of over 362,000 new hotel rooms, with the Kingdom's current inventory expanding from 161,000 rooms in 2024 to an expected 263,000 by 2030, positioning Saudi Arabia to overtake the UAE as the Middle East's largest hospitality market.

The mega-project boom is reshaping the luxury hospitality landscape, with Red Sea Global opening 19 luxury hotels in 2025, including 11 resorts at The Red Sea destination and eight at Amaala wellness hub, as part of the $23.6 billion Red Sea development featuring 50 resorts by 2030 and the ultra-luxury $15 billion AlUla heritage resort. The Red Sea's Sindalah luxury island opened in 2024, while Amaala's first phase launches in 2025 with 1,400 keys across eight resorts including Four Seasons Resort & Residences with 220 keys, The Ritz-Carlton Amaala with 390 accommodations, Nammos Resort with 110 rooms marking the Greek brand's first hotel outside Greece, and Equinox Resort with 128 keys focused on wellness tourism. NEOM's ambitious developments include robotic concierge services, motorized smart beds, and AI-driven guest experiences opening at Oxagon in 2025.

Technology integration and changing travel demographics are accelerating market transformation, with 99% increase in tourism hospitality licenses issued in 2024, while Dubai's average daily rate growth of 4.6% and 10% ADR jump in upscale segments demonstrate strong pricing power. The hospitality sector, valued at USD 48.6 billion in 2024 and projected to reach USD 109.6 billion by 2033 at a 9.5% CAGR, is embracing cutting-edge technologies including AI-powered chatbots, IoT-enabled smart rooms, mobile applications for seamless booking, biometric check-ins, and digital wallet integration. Major international brands are expanding aggressively, with Accor planning to double its Saudi portfolio in four years, Four Seasons developing six properties across NEOM, The Red Sea, Jeddah, Riyadh, and Diriyah, while Best Western targets 45 hotels from the current seven, and Red Sea Global employs 70,000 people in hotel construction, collectively contributing $62 billion to GDP during the construction phase alone.

Saudi Arabia Luxury Hotel Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

● Business Hotels
● Airport Hotels
● Suite Hotels
● Resorts
● Others

Room Type Insights:

● Luxury
● Upper-Upscale
● Upscale

Category Insights:

● Chain
● Independent

Breakup by Region:

● Northern and Central Region
● Western Region
● Eastern Region
● Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

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Recent News and Developments in Saudi Arabia Luxury Hotel Market

● October 2025: New Murabba Development Company announced plans for a 27 million square meter development featuring 18 communities, over 100,000 residential units, 9,000 hotel rooms, and the Mukaab-a 400-meter cubed structure integrating modern Najdi architectural design with advanced digital technologies, positioning New Murabba as a premier tourism and hospitality destination.

● November 2025: Red Sea Global announced the opening of 19 luxury hotels, including 11 resorts at The Red Sea and eight at Amaala, contributing significantly to economic growth and targeting millions of tourists by 2030 across its large-scale development projects.

● December 2025: Shiji Group established a new entity in Saudi Arabia to support the Kingdom's rapidly growing hospitality sector, providing cutting-edge technology solutions for hotel operations, guest experience management, and digital transformation initiatives aligned with Vision 2030 objectives.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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