50,683 new hotel rooms to open in Saudi Arabia, UAE, Qatar, Egypt in 2025

Zawya

19-02-2025

Saudi Arabia, the UAE, Qatar, and Egypt are driving the Middle East and Africa's hotel development pipeline with 50,683 rooms expected to open in 2025, the latest pipeline data showed.
Data from CoStar, a global provider of real estate data and analytics, revealed that the region's hotel pipeline remains strong, with 104,572 rooms currently under construction. However, the number of rooms in the final planning stages has dropped by 21.8 percent to 28,875. In contrast, planned rooms have surged by 17.1 percent, reaching 94,056.
Kostas Nikolaidis, senior account executive for the Middle East and Africa at CoStar, said: 'The increased focus on tourism and hospitality, driven by the need for economic diversification, has provided a massive boost to the sector.'
He said that Saudi Arabia and the UAE have long led the region's hotel development, with Qatar having expanded rapidly in preparation for the 2022 World Cup.
Nikolaidis said Egypt is also experiencing renewed investor interest after years of currency devaluations. 'Foreign investment plans are accelerating with the hospitality sector featuring high on the agenda,' he added.
Saudi Arabia, he continued, has emerged as a major player, with a growing pipeline driven by the ambitious Saudi Vision 2030. 'Giga-projects such as NEOM and Red Sea Global (RSG) are swiftly reaching the point where the first hotels open and are ready to welcome visitors,' he said.
The data showed that Makkah and Medina also have impressive pipelines, with 17,646 and 20,079 rooms respectively spread across various stages of development.
Meanwhile, Qatar and the UAE, led by Dubai, are driving regional hotel growth, with CoStar data showing Dubai adding 5,344 rooms in 2025, while Riyadh and Jeddah will add 3,485 and 3,156 rooms, respectively.
The region's growing demand for hotel capacity is driven by tourism, which is projected to continue increasing. As countries ramp up efforts to attract foreign investment and strengthen tourism infrastructure, hotel development remains a key element of economic diversification strategies.
'With tourism demand expected to continuously grow in the region, it comes as no surprise that more hotel rooms are required to accommodate the future demand,' Nikolaidis concluded
(Reporting by SA Kader; Editing by Anoop Menon)