Rotana Hotels is intensifying its focus on Saudi Arabia’s smaller cities as part of a bold growth plan to cement its footprint across the Kingdom. Speaking on the sidelines of the third Saudi Tourism Forum, Rotana’s Chief Operating Officer, Eddy Tannous, outlined a strategy that centers on collaboration with tourism authorities, development funds, and private investors to explore opportunities in emerging destinations such as Al-Baha and Asir. This shift forms a crucial pillar of Rotana’s broader Saudi expansion, aligning with a perception that today’s lesser-known locales are rapidly evolving into sought-after travel destinations. The company has already disclosed plans to develop nine new properties in Saudi Arabia, five of which are slated to open in 2025. These targets complement a series of openings in 2024, which included Nova M — the first Edge by Rotana property — along with Dar Rayhaan by Rotana in Alkhobar and Al Manakha Rotana in Madinah. These moves underscore Rotana’s calibrated approach to growth, balancing flagship projects in key markets with a deliberate push into promising secondary cities.
Expanding to Smaller Saudi Cities: A Core Pillar of Rotana’s Growth
Eddy Tannous emphasized that Rotana’s development pipeline is not limited to the country’s major hubs. He articulated a forward-looking timetable that envisions openings over the next two to five years, with a particular emphasis on six to eight properties across tertiary cities where travel demand is now showing through definitively. This plan is rooted in a recognition that destinations in the Kingdom are increasingly attracting both domestic and international visitors who seek a diversified portfolio of hospitality experiences. The COO’s comments reflect a strategic bet on the long-term viability of Al-Baha and Asir as travel magnets, driven by government-led initiatives, rising domestic tourism, and a broader push to distribute tourism activity more evenly across the country. The emphasis on smaller cities does not imply a retreat from Rotana’s established markets; rather, it signals a complementary expansion that leverages the Kingdom’s evolving tourism ecosystem. The approach aims to create a robust, geographically balanced footprint that can absorb the rising demand for both business and leisure travel, especially as Saudi Arabia positions itself as a year-round destination. In this context, Rotana’s engagement with local authorities and development partners becomes a central mechanism, enabling the company to tailor its investments to city-specific dynamics while aligning with national strategic objectives.
Saudi Arabia’s hospitality sector is currently experiencing rapid growth, a trend that is reinforced by the Kingdom’s position as a leading player in international tourist arrival growth in 2024. The broader backdrop is favorable: global travel has shown notable rebound and expansion, with the Kingdom contributing to a significant portion of the regional and international demand. Against this macro backdrop, Rotana’s targeted expansion into smaller Saudi locales is framed as a strategic course correction designed to unlock latent demand in places where travel patterns are shifting. The company’s approach reflects a careful balance between exploiting high-potential markets that already have a clear path to profitability and cultivating nascent markets that could yield strong long-term returns as infrastructure, accessibility, and branding mature. The emphasis on tertiary destinations complements Rotana’s existing portfolio while enabling the company to diversify its revenue streams and stabilize occupancy across seasons and economic cycles.
Rotana’s growth strategy in Saudi Arabia is also anchored in its ongoing brand development and pipeline. The company has highlighted notable openings that reinforce its confidence in the Saudi market’s trajectory. In 2024, Rotana marked milestones with Nova M, the first Edge by Rotana property, signaling an expansion of its design-forward, branded footprint. This was complemented by the launch of Dar Rayhaan by Rotana in Alkhobar and Al Manakha Rotana in Madinah. The introduction of these properties in multiple cities demonstrates Rotana’s intent to maintain a broad presence while experimenting with distinct brand concepts and formats that can appeal to diverse traveler segments. The expansion plan includes Yasmina Rayhaan by Rotana in Riyadh, a project designed to meet the growing demand for luxurious accommodations and differentiated guest experiences in the Kingdom’s capital. These developments are not only about increasing room counts; they are about embedding Rotana’s hospitality standards and service ethos into strategic locations where demand is deemed sustainable and growth-oriented.
From a strategic standpoint, Rotana’s leadership frames Saudi Arabia as a region in which growth is both intense and enduring. The company’s leadership stresses that Saudi Arabia is not merely a focus area within the Middle East but a central hub in Rotana’s regional strategy. The leadership’s messaging underscores Vision 2030 as a catalyst that accelerates the Kingdom’s tourism and hospitality ambitions, expanding opportunities for both government-led projects and private investment. Tannous reaffirmed that Rotana’s Saudi focus has always been a core priority and that Vision 2030 has amplified its resolve to deepen the company’s footprint in the Kingdom. By simultaneously pursuing government sector partnerships and private investor collaborations, Rotana aims to harness a multifaceted growth engine that leverages policy support, infrastructure development, and market demand to accelerate expansion. The company’s strategy thus places it at the intersection of public and private investment, positioning Rotana as a key partner in Saudi Arabia’s ongoing transformation of its hospitality landscape.
Saudi Market Momentum and Propelled Pipeline
Rotana’s expansion narrative in Saudi Arabia sits against a backdrop of robust market momentum. Saudi Arabia’s hospitality sector is poised for sustained growth, propelled by a record surge in international tourist arrivals. In 2024, the Kingdom’s hospitality market was highlighted as part of a broader global growth story, with substantial inbound tourism activity contributing to higher occupancy, broader branding opportunities, and stronger demand for diversified accommodation options. The domestic and international travel mix is shifting in ways that favor premium and lifestyle brands like Rotana, which is well-positioned to capitalize on higher-value segments through a combination of luxury and mid-scale offerings. This momentum dovetails with Rotana’s stated objective of tripling its current key count in Saudi Arabia to reach 6,000 within the next three years. Achieving this ambitious target would mark a significant milestone in Rotana’s regional expansion and would represent a major intensification of its presence across multiple Saudi markets, signaling confidence in both the demand environment and the Kingdom’s long-term growth trajectory.
Rotana’s project pipeline in Saudi Arabia reinforces the company’s confidence in the Kingdom’s hospitality demand. The company has outlined a plan to push forward with a nine-property development slate within the Kingdom, with five of those properties scheduled to debut in 2025. This forward-looking plan aligns with the broader national growth agenda and the rapid pace of development across key tourism hubs. The timeline for the openings in 2025 implies a rapid ramp-up in new supply, which will likely have a consequential impact on occupancy levels, brand visibility, and market share within the competitive Saudi hospitality space. The pipeline underscores Rotana’s readiness to scale quickly in response to market opportunities while maintaining quality and consistency across properties. It reflects a multi-city strategy that seeks to optimize portfolio performance by balancing high-impact flagship projects with a broader spread of hotels in promising secondary markets.
Rotana’s near-term deliverables include several high-profile properties that are designed to appeal to both business and leisure travelers. The firm has already rolled out new openings in 2024 and is forecast to continue this momentum into 2025 with additional properties that complement its Riyadh and Eastern Province footprint. The Yasmina Rayhaan by Rotana in Riyadh, in particular, is positioned to meet rising demand for premium accommodations in the capital, supporting corporate travel, government-related visits, and leisure trips. This project aligns with Rotana’s strategy of embedding itself in major urban centers while also nurturing growth in smaller regional markets where traveler demand is growing. The company’s broader expansion strategy integrates a strong emphasis on brand differentiation, service excellence, and a flexible property mix that can accommodate shifts in traveler preferences and evolving market dynamics.
In addition to domestic growth, Rotana’s expansion ambitions extend to a broader regional and international horizon. The company has signaled a commitment to strengthening its footprint in key markets across the Middle East, Africa, Eastern Europe, and Turkiye — regions where it currently operates 81 properties. The pipeline includes 36 new properties across 22 cities, a figure that encompasses Saudi projects as part of the overall global growth strategy. This international expansion is designed to complement Saudi investments by establishing a robust, multi-market platform that can support a wide range of travel demand—business, leisure, and mixed-use tourism—while enabling Rotana to leverage regional synergies, cross-market marketing, and an integrated loyalty ecosystem. The global portfolio expansion also reflects Rotana’s adaptability to different regulatory environments, consumer preferences, and competitive landscapes across diverse geographies.
Vision 2030 Catalyst and Government-Driven Growth
Rotana’s leadership consistently frames Saudi Arabia as the region’s fastest-growing hospitality market, driven by the Vision 2030 framework and a strategic emphasis on both government-led and private sector initiatives. Eddy Tannous remarked that Saudi Arabia’s growth trajectory stands out within the broader Middle East, driven by structural reforms, investment in infrastructure, and an escalated focus on hospitality and tourism as economic accelerants. The Vision 2030 program provides a framework that supports a high-caliber, investor-friendly environment in which hospitality brands can thrive. In this context, Rotana’s strategy is to balance large-scale government projects with opportunities funded by private investors, ensuring that the company can participate across different segments of the market. The emphasis on both government and private investment reflects a nuanced approach to capital allocation, revenue diversification, and risk management, enabling Rotana to capitalize on opportunities in public-private projects, tourism corridors, and new destination development.
Rotana’s approach to Saudi growth is anchored in a long-term perspective that integrates policy priorities with market demand. Tannous highlighted that Velocities in Vision 2030 have been pivotal in accelerating hospitality development, with the Kingdom providing a conducive environment for brand-led growth. This alignment with national objectives reinforces Rotana’s strategic intent to participate in the country’s transformation by delivering high-quality hospitality experiences and contributing to job creation, tourist attraction, and destination branding. The company’s expansion strategy is framed as a response to a government-led push to broaden tourism offerings, improve infrastructure, and diversify economic activity beyond oil. By aligning its pipeline with Vision 2030’s goals, Rotana positions itself as a premier hospitality partner capable of delivering premium experiences in both urban centers and emerging regional hubs.
Rotana’s expansion roadmap also contemplates the influence of major international events as catalysts for hospitality demand. The company underscores that Saudi Arabia’s hosting of the FIFA World Cup in 2034 will attract millions of visitors and create substantial opportunities for hotels, resorts, and related services. The anticipated surge in international traffic and longer stays around such a global event provides a strong demand signal that supports the company’s development timelines and occupancy planning. The prospect of hosting a World Cup is framed not only as a one-time spike in demand but as a lasting driver of brand recognition, tourism inflows, and the maturation of hospitality infrastructure. In this sense, Rotana views the 2034 World Cup as a structural tailwind that complements ongoing domestic demand and international visitor flows, reinforcing the rationale for aggressive investment in Saudi Arabia’s hospitality ecosystem.
Rotana’s leadership commentary reinforces the strategic logic behind the KSA-focused expansion. Philip Barnes, Rotana’s Chief Executive Officer, described the Saudi market as offering tremendous expansion potential. He highlighted the company’s ambitious KSA pipeline as a clear demonstration of commitment to hospitality and tourism sectors in the Kingdom and the broader region. Barnes noted that demand for business and leisure travel is rising to new heights in anticipation of major events such as the FIFA World Cup 2034, a sentiment that resonates across the industry as operators seek to capture growth opportunities and establish durable market leadership. The executive’s remarks convey a confidence in Rotana’s capacity to scale its brand presence, optimize its operating model, and deliver superior guest experiences as the market expands. This strategic stance signals Rotana’s intention to be a long-term partner in Saudi Arabia’s hospitality evolution, leveraging both market fundamentals and event-driven demand to sustain growth.
The 2034 FIFA World Cup and Hospitality Opportunities
Rotana’s expansion in Saudi Arabia is framed against a broader horizon of regional growth and international market expansion, with a particular emphasis on aligning with large-scale events that elevate destination appeal. The FIFA World Cup in 2034 stands out as a transformative opportunity that Rotana anticipates will attract millions of visitors. The company believes that the World Cup will create significant opportunities for the hospitality sector by inflating demand for premium accommodations, diversified experiences, and extended stays that complement core business and leisure travel patterns. This event-driven demand is expected to bolster occupancy levels, drive ancillary spending, and accelerate the development of hospitality infrastructure, port of entry improvements, and ancillary services that support large influxes of visitors. Rotana’s strategic response to this anticipated wave of demand is to strengthen its footprint across Saudi Arabia, ensuring that it has a robust network of properties that can accommodate different traveler segments, from corporate travelers and family groups to fans attending matches and tours.
The World Cup-related growth is positioned as a catalyst that accelerates systemic improvements in the hospitality ecosystem, including branding, service standards, and operational efficiency. For Rotana, the event aligns with its broader objective of delivering consistent, high-quality experiences across a diversified portfolio of properties that can meet the needs of a broad spectrum of travelers. The company’s presence in Riyadh with Yasmina Rayhaan, alongside other properties in major and emerging markets, is designed to maximize the brand’s visibility and appeal in the Kingdom while ensuring a seamless guest journey across its portfolio. In this frame, the 2034 World Cup acts as a strategic accelerant, enabling Rotana to accelerate its investment cadence, site selection, and openings to align with anticipated demand surges and to secure early footholds in cities and corridors that will serve as long-term hospitality hubs.
Rotana also envisions leveraging World Cup-related demand to cultivate lasting partnerships across government bodies, private investors, banks, and other strategic allies. The event presents opportunities to showcase Rotana’s capabilities in large-scale property development, management, and hospitality services, reinforcing its role as a trusted partner in Saudi Arabia’s evolving tourism architecture. The company’s CEO and COO emphasize that World Cup-driven demand is one of several catalysts that will accelerate growth, complementing ongoing city- and region-wide development strategies. In doing so, Rotana seeks to balance short-term opportunity with long-term value creation, ensuring that the company’s investments contribute to a sustainable hospitality ecosystem that benefits visitors, local communities, and stakeholders alike.
Beyond the World Cup, Rotana’s regional and international expansion plan reinforces a concerted effort to diversify its footprint and strengthen its market position in markets with rising leisure and business travel demand. The company’s strategy combines a robust pipeline in Saudi Arabia with an expanded international presence in the Middle East, Africa, Eastern Europe, and Turkiye. With 81 properties currently in operation globally, Rotana aims to leverage a pipeline of 36 new properties across 22 cities, a testament to its multi-market growth approach. This approach seeks to optimize geographic diversification, enabling Rotana to spread risk and capture opportunities across different markets and travel cycles.
Regional and International Expansion and Loyalty Initiatives
Rotana’s expansion strategy extends well beyond Saudi Arabia, with the company actively strengthening its presence in key markets such as the United Arab Emirates, Turkiye, and Africa, where demand for both leisure and business travel is rising. The global portfolio comprises 86 properties in operation, reflecting the scale and footprint of Rotana’s international network. The company notes that its source markets to Dubai and Abu Dhabi include significant economies such as the United Kingdom, Germany, and Russia, underscoring the cross-border demand that feeds into Rotana’s regional strategy. This mix of source markets and regional focus informs Rotana’s marketing, loyalty, and partnership strategies as the company seeks to optimize guest acquisition and retention across its global portfolio.
A key element of Rotana’s roadmap is an upcoming overhaul of its loyalty program. While executives indicated that details would be disclosed later in the year, the company signaled that the loyalty revamp would represent a major strategic initiative designed to make the program more attractive and broadly usable. The leadership suggested that the revamped program would unlock new collaboration opportunities with banks, credit card issuers, and airlines, expanding the ways in which loyalty benefits can be earned and redeemed. This implies a strategic shift toward loyalty ecosystems that can integrate with financial institutions and airline partners, potentially broadening Rotana’s appeal to a wider audience of travelers who value rewards and seamless redemption experiences. The anticipated 2025 rollout window reflects Rotana’s commitment to delivering tangible enhancements that can translate into increased guest loyalty, higher repeat visitation, and improved partner engagement.
Rotana’s growth momentum is supported by both regional leadership and a global strategy that seeks to harmonize the Kingdom’s expansion with broader international opportunities. The company asserts that its strategy is responsive to market signals and the evolving needs of travelers, and it is designed to maintain a balance between delivering premium experiences in flagship markets and expanding its network in high-potential locations. The emphasis on a diversified portfolio — including a mix of luxury, lifestyle, and business-oriented properties — is intended to appeal to a wide spectrum of guests, while ensuring that Rotana remains competitive in markets with varying competitive dynamics and consumer preferences. By sustaining its growth in Saudi Arabia and expanding its footprint in adjacent markets, Rotana is aiming to build a resilient and scalable operation that can weather market fluctuations and capitalize on macroeconomic tailwinds.
Rotana’s expansion strategy thus rests on a multi-pronged approach: capitalizing on Saudi Arabia’s evolving tourism infrastructure, aligning with Vision 2030 priorities, leveraging event-driven demand, and expanding its international footprint to create a balanced, diversified portfolio. The company’s leadership emphasizes that the demand landscape is improving for both business and leisure travel, creating favorable conditions for a pipeline that includes 36 new properties in 22 cities worldwide. This approach positions Rotana not only as a regional leader within the Middle East but also as a globally relevant hospitality brand capable of delivering consistent guest experiences across a wide range of markets. As the company executes on its plan, it will be important to monitor how the domestic expansion in Saudi Arabia interacts with international growth opportunities, how capital is allocated to new developments, and how the loyalty program updates translate into measurable improvements in guest engagement and partner collaborations.
Conclusion
Rotana Hotels is executing a comprehensive, multi-layered expansion strategy that places Saudi Arabia at the core of its growth while maintaining a dynamic, regionally and globally expansive outlook. The company’s emphasis on smaller Saudi cities such as Al-Baha and Asir reflects a strategic shift toward diversified destination development, supported by government and private sector collaboration. With nine Saudi projects in the pipeline, including five slated for 2025 openings, Rotana is accelerating its footprint in markets that are increasingly recognized as travel magnets, driven by Vision 2030 and the Kingdom’s growth in tourism infrastructure. The global expansion, marked by 81 operating properties and 36 new properties in 22 cities, demonstrates Rotana’s ambition to scale its portfolio across the Middle East, Africa, Eastern Europe, and Turkiye, while maintaining a strong presence in the UAE and other key markets. The upcoming Yasmina Rayhaan by Rotana in Riyadh, along with the broadened portfolio in other Saudi cities, signals a strategic alignment with the Kingdom’s fast-evolving hospitality landscape and its ongoing drive to attract both business and leisure travelers.
Rotana’s leadership has underscored that the Kingdom represents not only a high-potential market but also a platform from which the company can drive broader regional and international growth. The CEO’s remarks about the tremendous potential for expansion in Saudi Arabia reflect confidence in the country’s capacity to absorb new properties and to support robust occupancy and performance. The company’s expansion is further aligned with major events such as the FIFA World Cup 2034, which are expected to attract millions of visitors and create substantial opportunities for hotels, resorts, and related services. Rotana’s strategy envisions a future in which its Saudi pipeline serves as a cornerstone of a broader regional growth engine, enabling it to capitalize on cross-market synergies, strengthen its brand presence, and deliver compelling guest experiences across a diverse set of destinations. The loyalty program revamp, anticipated to be announced in 2025, is viewed as a critical enabler of partnership opportunities with banks, credit card issuers, and airlines, expanding the program’s reach and enhancing its value proposition for travelers worldwide.
In summary, Rotana’s expansion in Saudi Arabia and beyond illustrates a deliberate, future-focused approach to hospitality growth that integrates government policy, market demand, and strategic partnerships. The company’s emphasis on smaller cities alongside flagship markets signals a holistic understanding of the Kingdom’s evolving travel landscape, while its international expansion and loyalty program enhancements position Rotana to compete effectively across a wide spectrum of markets. As Saudi Arabia continues to attract global attention and capital investment, Rotana’s strategy to grow to 6,000 keys in three years, to pursue a strong pipeline of new properties, and to revamp its loyalty framework appears well-timed to capitalize on both immediate opportunities and long-term demand driven by Vision 2030 and major international events. The result is a bold, integrated plan aimed at sustaining Rotana’s leadership in regional hospitality while expanding its influence on the global stage.
