Saudi Arabia is leading a $90 billion hotel and resort development pipeline across the Gulf Cooperation Council (GCC) and North Africa, with projects expected to add almost 200,000 rooms to the region’s accommodation supply.
The figures, published by global hospitality consultancy HVS ahead of the 2026 Future Hospitality Summit (FHS) World in Dubai, show that the planned developments could increase existing hotel supply across the region by about 27%.
Around 88,000 rooms are currently under construction, while another 25,000 are in final planning stages. More than 55% of the pipeline is expected to be delivered between now and 2030.
Saudi Arabia accounts for approximately 110,000 rooms, representing about half of the regional pipeline. Major developments are concentrated in Riyadh, Makkah, Madinah, Diriyah, NEOM, the Red Sea and Amaala.
The Saudi pipeline includes large pilgrimage-focused hotels as well as luxury resorts, branded residences and upper-midscale accommodation, reflecting the country’s broader tourism development strategy.
Egypt follows with about 42,000 rooms under development, with projects concentrated in Cairo, the North Coast, the Red Sea and emerging mixed-use destinations.
The UAE is the third-largest market in the pipeline. Despite having a more mature hospitality sector, the country continues to attract destination-led developments in Dubai, Abu Dhabi and Ras Al Khaimah.
Investment Models Evolve
HVS said the scale of development is being accompanied by changes in how hospitality projects are structured and financed.
Hala Matar Choufany, HVS President for the Middle East, Africa and South Asia, said the region’s pipeline reflects continued investor interest in its tourism and hospitality markets.
She said capital is increasingly being deployed through mixed-use developments, branded residences and phased delivery models designed to improve project economics and manage risk.
Saudi Arabia in particular is seeing major destination developments supported by government-backed investment vehicles and public-private partnerships. Developers across the wider region are also diversifying revenue streams by incorporating residential and mixed-use components into hospitality projects.
The nearly 200,000 planned rooms will not enter the market simultaneously. About 44% are currently under construction, with the remainder expected to be delivered in stages through 2030 and beyond.
Saudi Arabia’s major destination developments have longer construction and delivery timelines, while the UAE has a shorter-term pipeline, with significant supply expected between 2028 and 2030. Egypt’s projects are also being developed over several years across major tourism destinations.
Premium and Midscale Growth
Luxury and upper-upscale hotels account for the largest share of planned supply, reflecting investor demand for premium accommodation, branded properties and integrated resort destinations.
At the same time, the upper-midscale segment is expanding, particularly in Saudi Arabia. International brands including Hampton by Hilton, Holiday Inn Express, Fairfield by Marriott and ibis are developing properties aimed at providing more accessible accommodation as tourism activity expands.
HVS said the success of the region’s hospitality expansion will depend on more than the number of rooms delivered.
Connectivity through air transport, road networks and digital infrastructure will remain important, while talent development, operational standards and guest experience will influence the long-term performance of new destinations.
Choufany said the region’s hospitality market is becoming more competitive and capital is becoming more selective, increasing the importance of strong execution and sustainable demand.
The developments will be a major focus at FHS World 2026, which is scheduled to take place at Madinat Jumeirah in Dubai from September 29 to October 1 under the theme “Reinvest in our Future”.
The event is expected to bring together investors, developers and hospitality industry leaders to examine investment opportunities and changing approaches to real estate and tourism development across the region.