Saudi Arabia Hotel Performance Forecast Report: June, July, and August 2025- Including Strategic Recommendations
- EDITOR
- 6 days ago
- 3 min read
Updated as of 24 May 2025
Saudi Arabia’s hotel sector is projected to achieve RevPAR growth of 10–14% year-over-year during the summer of 2025, driven by Vision 2030 tourism investments, religious pilgrimage demand, and a surge in luxury and business travel. Occupancy rates are forecast to peak at 75–80% in June, coinciding with the Hajj season, while average daily rates (ADR) are expected to rise 8–12% YoY, led by holy cities and giga-project developments.
Current Performance Trends (Q1 2025)In the first quarter of 2025, Saudi Arabia’s hotel sector demonstrated robust growth, with national occupancy averaging 72%, a 15% increase compared to Q1 2024. Holy cities such as Makkah and Madinah achieved 85% occupancy during Ramadan and Umrah seasons, while Riyadh and Jeddah saw occupancy rates of 68% and 65%, respectively, supported by corporate and leisure demand. Average daily rates (ADR) rose 10% year-over-year to SAR 1,200 ($320 USD), driven by premium demand in luxury destinations like NEOM and the Red Sea Project. RevPAR climbed 23% YoY to SAR 864 ($230 USD), surpassing pre-pandemic (2019) levels by 12%.
Summer 2025 Forecast (June–August)June will be the strongest month, with occupancy projected at 75–80% as millions of pilgrims arrive for Hajj (June 4–9, 2025). ADR in Makkah and Madinah is expected to reach SAR 2,000–2,500 ($533–667 USD) during this period. July and August will see a shift to leisure and business travel, with occupancy stabilizing at 65–70% and ADR rising to SAR 1,300–1,500 ($347–400 USD) in coastal and giga-project destinations. RevPAR is forecast to peak at SAR 1,500–2,000 ($400–533 USD) in June, followed by SAR 845–1,050 ($225–280 USD) in July and August...... Continue reading (Members Only)
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