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The Saudi Press Agency conveyed the Ministry of Tourism data showing that Madinah’s hospitality sector led the Kingdom with a 74.7 percent occupancy rate during the first six months of 2025. An average daily rate of 538 Saudi riyals accompanied this figure while revenue per available room reached 402 Saudi riyals, the ministry assessment found. Jeddah Governorate posted an occupancy rate of 59.7 percent and Riyadh 58.3 percent, completing the top three according to the report. The strong showing came as the city continued to attract visitors to its religious and cultural landmarks throughout the year.
According to MMCG hospitality data, the national average occupancy across Saudi Arabia stood at approximately 61.5 percent for 2025, a level that Madinah substantially exceeded. The city incorporated roughly 690 additional hotel rooms in the first half of the year, expanding its inventory to about 49,100 keys with plans for a further 1,000 rooms in the pipeline. This capacity growth supported the elevated performance metrics recorded in the ministry report.
A Renub Research study projected the Saudi hotel market to grow from 51.53 billion U.S. dollars in 2025 to 111.18 billion by 2034, registering a compound annual growth rate of 8.92 percent. Such expansion forms part of the Kingdom’s strategy to bolster its tourism industry, the consultancy noted in its analysis. Madinah’s leadership in occupancy rates aligns with increased investments in regional infrastructure and visitor services.
The Al-Madinah Al-Munawwarah Chamber detailed significant advancements in the local hospitality sector over the period in its own review. The chamber reported that the rise in licensed facilities helped accommodate higher visitor volumes without compromising service quality. Its findings corroborated the Ministry of Tourism statistics and emphasized the economic benefits flowing to the region from sustained high occupancy.
Economy Middle East reported that luxury hotels in Madinah experienced a 4 percent occupancy increase in the last week of October 2025 while the overall city occupancy rose 2.5 percent from the prior week. These weekly gains built upon the first-half momentum that had already established Madinah as the national leader. The publication tied the performance to the city’s appeal as a year-round destination rather than one limited to peak pilgrimage seasons.
Further context from sector observers indicated that ongoing developments under national tourism initiatives have played a role in diversifying the visitor base to Madinah. The combination of new hotel supply and targeted marketing has helped maintain rates above the national average, multiple analyses concluded. This trend is expected to continue as additional projects come online in the coming years according to industry forecasts.
