Saudi Arabia’s Hospitality Boom in 2024 and Taiba Investments’ Standout Performance

Saudi Arabia’s hospitality sector grew quickly in 2024. Government policies, high tourism numbers, and large investments are the three main factors leading to this growth. The hospitality industry in Saudi Arabia was worth about $48.6 billion in 2024. It is expected to grow to $109.6 billion by 2033 at a CAGR of about 9.5%. Saudi Arabia’s hospitality industry growth is mainly due to the arrival of more international tourists. This surge is driven by the country’s ambitious Vision 2030 plan, which focuses on broadening the economy and improving tourism infrastructure.

HospitalityNet claims Saudi Arabia has a large hotel construction pipeline. This aligns with the Kingdom’s goal to attract 70million international visitors each year by 2030.

The Saudi Arabia Hotel market is predicted to grow fast, increasing from $15.40 billion in 2024 to $27.26 billion by 2033. It’s expected to expand at a CAGR of 6.55% from 2025 to 2033, helped by more luxury hotels and easier visa rules for foreign visitors.

Occupancy rates of the real estate market of the Kingdom also grew significantly. The average occupancy increased by 0.9% by mid-2024. The average daily rate (ADR) went up by 6.7% in the first half of 2024. Revenue per available room (RevPAR) grew by 7.7% in the same period. Some hotels reached over 90% occupancy during this year’s school break.

Saudi Arabia’s hospitality sector benefits substantially from Vision 2030, which aims to diversify its economy beyond oil. The Kingdom also strives to attract more international visitors. The Kingdom surpassed its initial targets with over 100 million visitors in 2023 and has now set a new goal of reaching 150 million by 2030. The Kingdom’s tourism sector has contributed 11.5% to the GDP directly and indirectly. And this percentage is expected to increase to 16% by 2034. The hospitality industry is a big driver of tourism, which gives the economy a substantial boost – even if it’s not always obvious in the GDP numbers. Taiba Investments has thrived amid this industry growth, delivering strong performance.

Taiba Investments is a key player in Saudi hospitality industry. It showed strong performance in 2024. Taiba Investments’ acquisition of Dur Hospitality, combined with a surge in global travel to Saudi Arabia, drove strong revenue and profit growth for Taiba. This surpassed industry averages. According to En.maaal.com, Taiba’s revenue and net income in 2024 rose much higher than the previous year.

Taiba’s operating revenue increased by 159.2% in 2024,  reaching SAR 426.9 million, up from SAR 164.7 million in 2023. However, Saudi’s hospitality industry revenue is expected to grow at a CAGR of 7.5% from 2023 to 2028, according to ARABNEWS. The increase rate of Taiba’s operating revenue is about 21 times as much as the revenue for the hospitality industry. This demonstrates Taiba’s exceptional performance in 2024, significantly outperforming the broader industry’s average growth rate. Besides operating income, Taiba’s net income increased by 205.6% in 2024, reaching SAR 333.7 million, up from SAR 109.2 million in 2023. With this strong profitability of Taiba, its earnings per share have an increase of 98%, from SAR 0.65 in 2023 to SAR 1.28 per share. Occupancy rates at Taiba’s hotels also increased, driven by a rise in Umrah pilgrims and religious visitors, along with higher demand from events and conferences in Riyadh.

Taiba’s strong earnings helped drive improved returns for shareholders. The company’s Return on Equity (ROE) for the trailing twelve months jumped to about 3.92% as of March 2025 according to Yahoo Finance. Its Return on Assets (ROA) was around 3.4% as of March 2025 according to Yahoo Finance. Even though the percentages might not look huge at first glance, Taiba beat the industry average by a wide margin. That’s impressive, especially considering how capital-heavy the hospitality sector is and the fact that it’s still bouncing back. A lot of hotel operators in Saudi Arabia were still struggling to post positive ROE, but Taiba not only pulled it off—they led the way. Plus, after their big acquisition of Dur Hospitality in 2024, Taiba’s equity base grew a lot. So, hitting a 3.92% ROE on a much bigger capital base shows they’re really creating solid value. As the benefits of the merger start to kick in, their ROE and ROA are likely to climb even more. Bottom line: Taiba’s pulling ahead of the pack when it comes to getting strong returns on their capital, thanks to smart, flexible management during Saudi Arabia’s tourism rebound.

Taiba’s success fits with Saudi Arabia’s Vision 2030. The plan seeks growth in tourism infrastructure, capacity for pilgrims, and private sector involvement. Taiba supported these goals with acquisitions, brand partnerships, and new hotels. Taiba acquired Dur Hospitality in late 2023,and this acquiring in seven cities gave Taiba 40 properties and over 7,700 rooms. The properties are in Makkah and Madinah, which are key for religious tourism. Taiba also has eight more properties in development. All these properties have laid strong foundation for the growth of Taiba’s business. Taiba partnered with Marriott International and Hilton Worldwide. They launched new hotels in Riyadh and Madinah. The Waldorf Astoria in Madinah is the first of its kind there. These partnerships attract business travelers and luxury tourists, supporting the goal of tourism diversity in 2030.

Taiba invests in Vision 2030 priorities. It focuses on religious, leisure, and business tourism. Its hotels in Madinah support pilgrim demand. Its properties in Riyadh support conferences and events. Taiba saw higher occupancy in 2024 from Umrah pilgrims and the MICE market. Taiba’s 2024 success is in line with the national drive to make Saudi Arabia a major tourism hub. Taiba’s performance also helps the government’s objectives to realize the goals in Vision 2030. In this way, Taiba has positioned itself as a key contributor to the Kingdom’s evolving tourism landscape—quietly but effectively advancing the ambitions of Vision 2030 through strategic focus and timely execution.