Post by : Mariam
Al-Faris
The hospitality sector in Madinah Region achieved remarkable performance during the first half of 2025, emerging as the top-performing region in Saudi Arabia in terms of hotel occupancy rates. According to the latest economic report released by the Al-Madinah Al-Munawwarah Chamber, Madinah surpassed other key regions in the Kingdom, reflecting a growing tourism and hospitality industry driven by domestic and international visitors.
The report highlighted that tourist hospitality facilities in Madinah reached an occupancy rate of 74.7% in the first half of 2025. The average daily rate (ADR) for hotels was recorded at SAR 538, while revenue per available room (RevPAR) reached SAR 402. These figures placed Madinah at the forefront of the Kingdom’s regions, followed by Jeddah Governorate with 59.7% occupancy and Riyadh with 58.3%, demonstrating the region’s growing appeal as a top tourist and business destination.
By the end of the first half of 2025, Madinah Region had a total of 523 licensed hospitality facilities. Of these, 456 were located within the city of Madinah, including 361 hotels and 95 serviced apartments. The report emphasized that the total number of licensed rooms in the region reached approximately 64,569, with hotels accounting for 94% of this total. This makes Madinah the second-highest region in Saudi Arabia in terms of the number of licensed hotel rooms, just behind Makkah.
Madinah’s outstanding occupancy rate and revenue performance position the region as a key hub for the Kingdom’s tourism and hospitality sector. Its leading position indicates successful efforts to attract visitors, improve hospitality standards, and enhance tourism infrastructure. Compared to Jeddah and Riyadh, Madinah not only leads in occupancy but also in average room revenue, reflecting higher demand and the quality of services offered in the city.
The strong performance of the hospitality sector has positive implications for the region’s economy. Increased hotel occupancy supports employment in tourism, services, and related sectors while contributing to local revenues. The report suggests that ongoing investments in hotel development and tourism infrastructure are helping Madinah maintain its competitive edge as a leading destination for visitors within Saudi Arabia and beyond.
With continued growth in domestic and international tourism, Madinah’s hospitality sector is expected to maintain its strong performance for the remainder of 2025. The region’s high occupancy rates, increasing number of facilities, and robust revenue per room demonstrate the success of strategic efforts to enhance tourism and attract visitors. The Al-Madinah Al-Munawwarah Chamber plans to continue monitoring these trends and provide insights to support sustainable growth in the hospitality industry.
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