JLL: Mecca's hospitality growth rises 8.7% in Q2

A report by JLL indicates that the hospitality sector in Saudi Arabia experienced a rebound in the second quarter of 2026, supported by the Hajj and Umrah seasons and increased domestic tourism, despite challenges posed by regional unrest and impacts on international travel. Notable growth was observed in Mecca, where occupancy rates rose by 6.3 percentage points to reach 68.2%, and room revenues increased by 8.7%. Medina recorded the highest occupancy among cities at 75.1%, although revenues slightly declined due to lower room rates. Conversely, Riyadh experienced the largest decrease in occupancy, falling by 16.3 percentage points, while its revenues dropped by 23.2% as a result of weak corporate demand and increased supply. During the quarter, approximately 1,400 hotel rooms were added across Mecca, Medina, Riyadh, and Jeddah, reflecting ongoing market expansion and diversification of options. The influx of additional hotel capacity is expected to boost competition, driving hotels to enhance service quality, guest experiences, and operational technologies. A positive outlook is anticipated, supported by infrastructure investments and Saudi Arabia’s Vision 2030, which aims to sustain growth in the sector.

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