Saudi hotel room rates have fallen nine quarters running
The average Saudi hotel room went for SAR 423 a night in Q1 2026, 11.4% less than a year earlier. Part of the fall is price, part is a much larger pool of licensed hotels.
The average licensed hotel room in Saudi Arabia went for SAR 423 a night in Q1 2026, 11.4% less than a year earlier. It is the ninth year-on-year fall in a row. Some of that is hotels charging less. A lot of it is that the number of licensed hotels has doubled since 2024, and the newcomers are smaller and cheaper.
Key figures
| Figure | Value | Period | Source |
|---|---|---|---|
| Hotel ADR, national | SAR 423, -11.4% YoY | Q1 2026 | GASTAT bulletin |
| Serviced-apartment ADR, national | SAR 206, -1.2% YoY | Q1 2026 | GASTAT workbook |
| Riyadh incl. Diriyah | SAR 783 | Q1 2026 | GASTAT Table 2.11 |
| Makkah city | SAR 356 | Q1 2026 | GASTAT Table 2.11 |
| Licensed hotels | 2,963, up from 1,441 | Q1 2024 to Q1 2026 | GASTAT Table 1.1 |
ADR, the average daily rate, is room revenue divided by rooms sold. GASTAT's figure excludes VAT and the municipal fee.
Nine falls in a row, the Hajj quarter included
GASTAT has published quarterly hotel rates since 2023, and every year-on-year comparison so far has been negative. The chart below starts in 2024. The Hajj quarter is falling too: SAR 669 in Q2 2024, then SAR 643 a year later.
Serviced apartments have held up much better. Their rate was SAR 206 in Q1 2026, 5.8% above Q1 2024, while hotels were 14.3% below.
More hotels, smaller hotels
Makkah region holds 72.2% of the Kingdom's licensed hotel rooms, so the national figure is mostly a Makkah number. That is why it fell while seven of thirteen regions rose.
Licensed hotels went from 1,441 in Q1 2024 to 2,963 in Q1 2026. Over the same period the average hotel got smaller, from 178.1 rooms to 170.8 (supply detail). The licensing drive pulled in properties that were already trading but not counted, and they mostly sit at the cheaper end.
We can't say how much of the fall is mix and how much is price. GASTAT publishes no rate by star class, and nobody else does either.
Riyadh charges twice what Makkah does
Q1 2026 is the first quarter GASTAT has printed rates by city. Riyadh, including Diriyah, led the named cities at SAR 783. Makkah came in at SAR 356, with a big swing inside the quarter: SAR 250 in January, SAR 569 in March.
Al-Ahsa, at SAR 610, sits ahead of Jeddah. And the line GASTAT leaves unnamed, which covers the Red Sea coast and AlUla, printed SAR 618. With only one quarter of city data, GASTAT gives no year-earlier city figure to compare against.
Riyadh's decline started earlier. Ministry of Tourism data has Riyadh hotels at SAR 801 in H1 2025, down 17.1% on a year before (Ministry of Tourism, H1 2025).
The guest pays about a fifth more
Add 15% VAT and a municipal fee of 5% at four stars and above, 2.5% below (MOMAH, ZATCA). By our estimate that takes the national SAR 423 to roughly SAR 499 to SAR 511 at the counter. Anyone comparing GASTAT with a booking site should do the same sum first.
Outlook
We expect the national rate to keep drifting down while licensing keeps adding small properties. Investors underwriting a branded hotel will get closer with the city figures, and closer still with rates from comparable hotels in their own submarket. Ask for the full Saudi hotel ADR table.
Sources
- GASTAT, Tourism Establishments Statistics Q1 2026, workbook (Tables 1.1, 2.11): link
- GASTAT, Tourism Establishments Statistics Q1 2026, bulletin (released 2 July 2026): link
- Ministry of Tourism, Hospitality Sector Performance H1 2025: link
- MOMAH, Municipal Services Fees Regulation (Table 1 item 16): link
- ZATCA, VAT Implementing Regulations (Article 30(3)): link