Hyatt International Hotels is realizing it must catch up with its competitors in Saudi Arabia and entered a fast track to achieve this.
In August 2024 WalletHub analyzed the nine most popular hotel rewards programs using 21 metrics, including blackout dates, short-notice reservations, and the number of transfer partners. Hyatt’s World of Hyatt program ranked best for all types of travelers with an overall score of 72 out of 100.
Saudi Arabia currently has a hotel development portfolio reportedly worth more than US$110 billion, which will result in the development of circa 310,000 hotel rooms by 2030.
Saudi Arabia’s hotel development portfolio is estimated to exceed US$110 billion, with plans to create approximately 310,000 hotel rooms by 2030.
To meet this demand, investments totaling $104 billion will be required, with $70 billion alone required to build 221,000 hotel rooms in the Holy Cities of Makkah and Madinah to meet the rising demand for religious tourism. With an anticipated 150 million visitors by 2030, the expansion focuses on the luxury and upscale categories to elevate the hospitality experience.
Knight Frank projects that Marriott will become the largest hotel operator in Saudi Arabia by 2030, with 26,200 rooms under management.
Currently, the largest operator in the Kingdom is Accor with 25,400 rooms.
With currently 1,700 rooms Hyatt has been behind. With Hyatt’s overall aggressive global expansion, Saudi Arabia is taking priority for the Chicago-based hotel group – and the World of Hyatt.
Hyatt is putting expansion in Saudi Arabia on a fast track by planning to increase their portfolio to 5,000 rooms over the next five years.
eTurboNews reported in 2015, that the first Hyatt Regency hotel opened in the Kingdom.
To demonstrate the importance and optimism of investing in the Kingdom the Hyatt International board meeting was held outside of the United States for the first time in 15 years, in Riyadh, Saudi Arabia.
His Excellency Ahmed Al-Khateeb, Minister of Tourism for the Kingdom of Saudi Arabia, held a high-level meeting with the Board of Directors of Hyatt International Hotels in Riyadh, marking a significant milestone for Hyatt to have their board meeting in the Kingdom.
This meeting with the tourism minister was also attended by several senior government officials, including His Excellency Dr. Majid bin Abdullah Al-Kassabi, Minister of Commerce, His Excellency Faisal F. Al Ibrahim, Minister of Economy and Planning, His Excellency Eng. Saleh bin Nasser Al Jasser, Minister of Transport and Logistics, and His Excellency Abdulmohsen Al Khalaf, Assistant Minister of Finance.
Minister Al Khateeb welcomed Hyatt’s decision to expand its operations in Saudi Arabia by increasing its room capacity from 1,700 to 5,000 rooms over the next five years, a move that is set to significantly enhance the Kingdom’s tourism infrastructure and hospitality offerings. He further acknowledged Hyatt’s intention to establish a regional office in Saudi Arabia, covering the Kingdom and Africa, which aligns with Saudi Arabia’s strategy to position itself as a tourism hub for the region.
In addition to the expansion, Hyatt International plans to create a specialized training academy within the Kingdom to empower Saudi nationals working in the hospitality and tourism industries, further supporting Saudi Arabia’s long-term vision of nurturing local talent in key sectors. This initiative will be crucial in developing a skilled workforce to meet the demands of the rapidly growing tourism sector.
Minister Al Khateeb highlighted the significant investment opportunities within Saudi Arabia’s booming tourism sector, which has witnessed unprecedented growth as part of the Kingdom’s Vision 2030. He reaffirmed the government’s dedication to providing a business-friendly environment that includes tailored incentives, comprehensive support, and streamlined processes for global investors.
Minister Al-Khateeb also emphasized Saudi Arabia’s determination to develop a globally competitive tourism ecosystem, attracting world-class hotel brands like Hyatt International to offer exceptional services and shape the Kingdom’s tourism landscape.
Reflecting on Hyatt’s expansion, Minister Al Khateeb expressed his appreciation for Hyatt International’s substantial investment and continued confidence in Saudi Arabia as a key market for growth. Their expansion highlights the Kingdom’s appeal as a global tourism destination and underscores the ongoing commitment to fostering a world-class business environment.
Additionally, Minister Al Khateeb highlighted the Tourism Investment Enablers Program (TIEP), designed to attract international investors by offering competitive advantages such as corporate tax exemptions, VAT reductions, and access to government-owned land under favorable terms. The Hospitality Investment Enabler Initiative, a part of the TIEP program, provides further incentives, including the suspension of municipal fees on hospitality facilities, demonstrating a robust commitment to attracting investments in tourism infrastructure.
This meeting and Hyatt’s commitment to Saudi Arabia represent a major step forward in the Kingdom’s ambitious journey to become a top global tourism destination. With Vision 2030 in progress, Saudi Arabia continues to foster meaningful partnerships with leading global players, reaffirming its position on the world stage.
