Investing, Delivering, Belonging: A Conversation on Hospitality, Real Estate, and Strategy in Saudi Arabia

Thank you to the network for curating an exceptional gathering of minds across real estate, hospitality, technology, human capital, logistics, and development. It was not just a networking event—it was a mirror held up to the Kingdom's evolving investment and operational landscape. And I was honored to be part of it.

Special thanks to the amazing ⭐Tatiana Skaf and Nader Mahmoud, for the invitation to the Network and to Zahi-Victor Hallit and Mohamad Rabih Itani, for our lively discussion during the panel.

Over a few hours of rich exchange, we explored questions that sit at the intersection of ambition and reality: – Why are hotel room rates in Saudi Arabia so high? – Is it truly profitable to invest in hospitality assets in the Kingdom? – What shapes HR strategies in a fast-moving market like Saudi Arabia? – Where does the working class live, and how does that affect everything from recruitment to residential investment? – And, perhaps most personally relevant to many in the room: how can expats invest wisely in the Kingdom’s future without compromising their own financial flexibility?

The Real Story Behind Room Rates and Hotel Profitability

Let’s begin with the facts.

As of Q1 2025, Saudi Arabia has over 22,750 hotel keys, with about 1,670 new rooms expected to enter the market this year. A staggering 66% of current supply is concentrated in the upper segments (luxury to upscale), and 82% of future developments continue that trend. The result? A concentrated supply of high-tier rooms—while midscale and budget segments remain underrepresented.

In Riyadh, for instance, despite high average daily rates (ADR ranges from SAR 850–900, according to STR( Smith Travel Research), the city faces declining occupancy rates, particularly outside peak seasons. Still, government events, regional summits, and a shift beyond corporate tourism offer long-term upside.

(I like to provide actual data and metrics)

But let’s talk numbers.

In 2023, a mid-size 4-star hotel in Riyadh (230 keys) achieved:

• Revenue: SAR 44M

• EBITDA: SAR 13.6M

• EBITDA Margin: 31%

A 3-star hotel (287 keys) posted:

• Revenue: SAR 44M

• EBITDA: SAR 17M

• EBITDA Margin: 39%

What does this mean? Even with moderate occupancy (60–70%), hotels in Saudi can be highly profitable if they are properly managed, strategically positioned, and operationally lean.

What Really Affects Hospitality Performance in Saudi?

I’ve recently written about this in-depth—but to summarize a few key factors that define success (or failure) in Saudi’s hospitality market:

• Supply concentration in high-end segments creates pricing pressure but leaves room for midscale opportunities.

• Seasonality: Summer months see outbound travel and lower local demand.

• Labor force and recruitment: High turnover, visa regulations, and lack of affordable staff housing all affect operational costs and service delivery.

• Evolving demand drivers: Leisure tourism is rising, but events and business travel still dominate in cities like Riyadh.

From Feasibility to Reality: Why Project Management Matters

At Coldwell Banker Saudi Arabia, we go beyond surface-level analysis. Our team conducts High and Best Use (HBU) studies, deep market assessments, and scenario-based financial modeling for real estate investors, developers, and funds.

Here's the truth: Project Management is not a cost center. It’s a delivery engine. If your business model already accounts for feasibility, required IRRs, and includes professional PM fees—your project is far more likely to run smoothly and yield the returns you expected.

And this applies to individual investments too. That’s the essence of what I call the “Project Within”: Whether it’s a $100M development or a personal investment strategy, the question is the same— → Why are we doing this? → What does the 5-year plan look like? → What scenarios can we prepare for to secure profit and protect downside?

Every project is a reflection of its thinking. Rushed plans rarely deliver long-term value.

So How Should Expats Invest in Saudi Arabia?

This question came up more than once—and it’s one I love addressing, especially from a practical point of view. My key framework:

• Invest 15% of your income—consistently.

• Diversify: Don’t lock everything in real estate. Exit timelines can be unpredictable.

• Own real estate through funds, listed REITs, or co-investment platforms.

• If buying property, focus on small, well-located units with good rental potential. Think liquidity, not luxury.

• Add stocks, ETFs, or savings products with exposure to regional growth.

Most importantly: treat your personal investment portfolio like a development project. Plan it. Stress-test it. Deliver it.

Final Thoughts: Build with Intention, Invest with Insight

As always, it was a pleasure to share these perspectives—and to listen. I believe conversations like this don’t just inform strategy; they shape ecosystems.

If you’re curating events on real estate, hospitality, or investment—especially in the context of Saudi Arabia’s transformation—I’d be delighted to contribute. I bring both the data and the narrative.

Because at the end of the day, that’s what “Project Within” is all about: Intentional investment, responsible delivery, and a vision that serves both people and profit.

The investment perspectives shared in this article are for informational purposes only and do not constitute financial or investment advice under Saudi law. For regulated advisory services in the Kingdom of Saudi Arabia, please consult a licensed financial advisor.

📩 Interested in inviting me to speak at your next event or executive roundtable? Reach out via this link or connect with me on LinkedIn. Let’s build meaningfully.