Madinah city leads Saudi Arabia in hotel occupancy amid surge in visitors

Madinah’s hospitality sector registered a further rise in performance at the end of October, with luxury hotels recording a 4 percent increase in occupancy during the final week of the month.

Overall hotel occupancy in the city grew by 2.5 percent compared with the previous week, reflecting sustained demand from visitors and pilgrims, the Saudi Press Agency (SPA) reported.

During the first quarter of 2025, Madinah posted the highest hotel occupancy rate in Saudi Arabia, averaging 82.7 percent. The city maintained its strong momentum from late 2024, reinforcing its position as a leading destination for year-round religious tourism.

A report from the Al-Madinah Al-Munawwarah Chamber highlighted the scale of the city’s hospitality infrastructure, noting that Madinah now has:

• 523 licensed hospitality establishments
• 361 hotels
• 95 serviced apartments

Serviced apartments and other accommodation facilities achieved a 59.6 percent occupancy rate by the end of the first quarter, placing Madinah second nationwide after Riyadh. Officials attribute the increase to longer visitor stays and growing demand for diverse lodging options.

Madinah continues to welcome high numbers of pilgrims and travellers throughout the year. Although demand peaks during Haj, the city’s hospitality sector remains active across all seasons due to the steady flow of visitors to the Prophet’s Mosque and surrounding religious sites.

Madinah has also gained international recognition for urban well-being and cultural development.

Recent honours include:

• Accreditation as a Healthy City by the World Health Organization (WHO) in August, making it the second-largest city in the Middle East with a population exceeding one million to receive the distinction.

• Inclusion in UNESCO’s Creative Cities Network for Gastronomy, announced on World Cities Day 2025, recognising its rich culinary heritage and growing potential for innovation.