Hilton set to expand presence in Saudi Arabia with new agreements
US-based hospitality giant plans to more than quadruple its Saudi footprint, says top executive
Saudi Arabia’s hospitality landscape is expanding steadily with US-based hospitality giant Hilton signing an agreement with real estate developer Rua Al Madinah to open three new hotels in the Kingdom.
Three hotels opening under the brands Conrad Hotels and Resorts, Double Tree, and Hilton Garden Inn will add more than 1,600 hotel rooms to the holy city of Madinah. Moreover, the deal will also create more than 1,100 jobs in the Kingdom.
Speaking to Arab News on the sidelines of the Future Hospitality Forum on Monday in Riyadh, Guy Hutchinson, president of Hilton in the Middle East and Africa region, said that development of these projects will take a couple of years. “We have 1,600 keys coming in Madinah, under three brands — the Conrad, DoubleTree and Garden Inn. So we’re really very excited about this project. It’s going to take a couple of years to develop. The project is under construction now,” said Hutchinson.
The official added that these hotels which are being built in partnership with Rua Al Madinah will cater to all types of visitors ranging from luxurious travelers to mid-market guests.
“You’ve got the Conrad which is dealing more into the luxury space. You’ve got the DoubleTree which is upper upscale, and you’ve got Garden Inn, which deals with mid-market travelers,” noted Hutchinson.
He also added that the opening of these three hotels will propel religious tourism in the Kingdom. “I think to have a branded international company offering in one complex, three different options for three different traveler types is something quite unique. So, you’ll have the luxury customer. You will have the mid-market customer. It’s part of the expansion in religious tourism on its own and it is so important to the Kingdom,” Hutchinson said.
Commenting on the deal, Ahmed Al-Juhani, CEO of Rua Al Madinah, said the deal with Hilton will provide multi-ranged accommodations to travelers.
“This hotel management agreement marks a crucial step in elevating the experience of Madinah’s local and international visitors. Our company strives to achieve the objectives of our project, aimed at contributing to increasing visitor capacity and delivering an unparalleled experience,” said Al-Juhani. Saudi Arabia’s hospitality sector is growing by leaps and bounds with key global players entering the scene due to the businessfriendly policies of the Kingdom announced as part of its economic diversification efforts.
Hilton, during the event, also announced plans to develop two hotels in Jeddah and Abha. Hampton by Hilton Al Nuzhah in Jeddah will be developed in partnership with Al Manar United for Trading. Scheduled for opening in 2026, the hotel will feature 80 rooms.
The Hilton Garden Inn located in Abha is expected to open in 2027. The Abha hotel, also developed in partnership with Al Manar United for Trading will have 200 rooms, a lounge, a dining area, and a rooftop, as well as a gym and an outdoor pool.
Hutchinson during the talk, said that the company plans to more than quadruple its Saudi footprint and open more than 60 hotels, with plans to exceed 100 properties in the coming years. “As Saudi Arabia sets its target to increase hotel rooms to 550,000 by 2030, our pipeline of hotels will add more than 17,000 rooms in the coming years and we will introduce new brands to emerging and established destinations in Saudi Arabia,” said Hutchinson. He added: “From focused service and branded residences to lifestyle and luxury, two-thirds of our pipeline is currently under construction and we remain committed to diversifying our portfolio to cater to diverse traveler needs.”
In partnership with master developer Knowledge Economic City, Hilton also signed an agreement for Hilton Residences Madinah Knowledge Economic City adjacent to Hilton Madinah Knowledge Economic City which is currently under construction. The project in Madinah — set to open in 2026 — is expected to feature 64 two, three, and fourbedroom apartments.
“We are delighted to be working with master developer Knowledge Economic City to grow our footprint in Madinah. Knowledge Economic City is a very important project, playing a significant role in growing the city’s supply of modern and lifestyle destinations,” said Hutchinson.
He added: “We currently have Hilton Madinah Knowledge Economic City under construction, and the branded residences will provide guests with various choices of apartments and access to the hotel’s wide range of amenities, further contributing to destination accommodation offering.” Hilton Riyadh Olaya is also expected to open its doors to guests in the coming months. Carlos Khneisser, vice president, of development, Middle East and Africa at Hilton, said these new agreements will help meet the rising demand from travelers to Saudi Arabia as the Kingdom targets 150 million visitors by 2030. “Saudi Arabia’s tourism landscape continues to evolve rapidly, presenting significant growth opportunities for Hilton and our valued partners. Two-thirds of our Saudi pipeline is currently under construction and we are working closely with investors to expand into new destinations with more of our brands,” said Khneisser. Hutchinson said that Hilton is committed to creating 15,000 jobs in the Kingdom by 2030, with more than half of the recruits being local talents.
“Our pipeline of hotels will create 15,000 job opportunities, with more than half of these recruits anticipated to be Saudi nationals. Over the past two years, Hilton’s portfolio of hotels across Saudi Arabia have welcomed more than 250 trainees, of which more than 200 are women,” said Hutchinson. He added: “At the end of the day, we’re a people business where we are people serving people. That’s always been how we’ve developed things. And we’re definitely ahead of the curve in Saudi Arabia. You know, today, 55 percent of our workforce is Saudi. We are seeing enormous growth in women in leadership (roles). We have a female general manager in Saudi Arabia.”
Our pipeline of hotels will add more than 17,000 rooms in the coming years.
Guy Hutchinson
President of Hilton in the Middle
East and Africa region