Blacksand and Marriott sign SR5 billion deal for 1,300 Saudi hotel rooms

Real estate development firm Blacksand and global hospitality group Marriott have signed a SR5 billion ($1.33 billion) agreement to develop 10 hotels in Saudi Arabia. The partnership, announced in June at the Future Hospitality Summit in Riyadh, will add more than 1,300 rooms to the country's accommodation capacity over the next four years. The deal is expected to create almost 11,000 jobs across the construction and operation of the facilities.

The companies aim to generate over 6,000 full-time roles, with 60 percent of those positions dedicated to Saudi nationals. This initiative forms part of a broader strategy to expand the Kingdom's hospitality infrastructure as it targets 150 million annual visitors by the end of the decade. The agreement underscores the scale of international commitment to Saudi Arabia's tourism sector, which is backed by more than $120 billion in investment.

Blacksand CEO Omar Al-Abdullatif told Arab News that the decision to partner with Marriott was driven by the brand's global portfolio and extensive operating experience. He noted that selecting an operator is not a decision made after a hotel has been designed, but rather an early step that influences the concept, guest experience, and operational model. Al-Abdullatif emphasised that the operator ultimately determines how the asset performs over the long term.

Saudi Arabia's push to become a global tourism destination is reshaping its hospitality sector, drawing international hotel operators into a market that is rapidly expanding. Over 50 global hospitality brands are currently expanding their presence in the Kingdom. A pipeline is expected to add more than 200,000 hotel keys by 2030, positioning the sector for a new wave of demand as the country works to meet its visitor targets.

The country's cultural heritage and natural diversity are also attracting international luxury hospitality groups. Aman Group has identified Saudi Arabia as a natural fit for its destination-led portfolio. Vlad Doronin, chairman and CEO of Aman Group, told Arab News that the group operates 14 properties located in or close to UNESCO World Heritage Sites, reflecting a longstanding focus on destinations with exceptional cultural and historical significance.

Doronin described the forthcoming Aman project in Hegra, AlUla, as a rare opportunity to develop within Saudi Arabia's first UNESCO World Heritage Site. He said the project reflects the group's commitment to preserving the heritage of globally significant destinations. The group is also developing Amansamar in Wadi Safar, near Diriyah's UNESCO-listed At-Turaif district.

The Amansamar project will include hotel suites and branded residences, forming part of Wadi Safar's development into a cultural and lifestyle destination. Doronin highlighted the role of Vision 2030 in accelerating the development of Saudi Arabia's tourism sector. He noted that the country's long history as a crossroads for trade, culture, and travel had given it a deep-rooted connection to hospitality.

Doronin said that during a visit in 2019, he was struck by the richness of the culture and the ambition of the plans being made. He added that the pace of progress since then has been extraordinary, with destinations such as Diriyah, AlUla, and The Red Sea establishing Saudi Arabia as a compelling new luxury tourism market. For international hotel operators, the expansion is creating opportunities across a wider range of destinations and hospitality segments.

Nizar Weshah, area vice president for Saudi Arabia and general manager of Grand Hyatt Al Khobar Hotel and Residences, told Arab News that the Kingdom remains one of Hyatt's most important growth markets within the Europe, Africa, and Middle East region. He said the market offers long-term opportunities across established gateway cities and emerging tourism destinations. Weshah stated that the Kingdom's tourism ambitions, continued investment in infrastructure, and evolving domestic travel market create opportunities for a broader range of hospitality experiences.

These opportunities range from business and select-service accommodation to luxury, lifestyle, and wellbeing. Hyatt's Saudi portfolio is expected to triple in the coming years, with expansion focused on introducing the right brands to different destinations and tailoring hospitality offerings to travellers' needs. The strategy spans luxury, lifestyle, and full-service hotels, with the aim of expanding guest choice rather than simply increasing the number of properties.

Recent openings and planned developments illustrate this approach. Earlier this year, Hyatt welcomed the first guests to Miraval The Red Sea, marking the luxury wellbeing brand's first resort outside the US. Grand Hyatt The Red Sea is also expected to open later this year on Shura Island, adding accommodation for leisure travellers, destination weddings, meetings, and events.

Hyatt Place AlUla is set to open in the coming months, further expanding the group's presence in a key cultural destination, Weshah said. The Hyatt official emphasised the importance of agility as market conditions evolve, noting that operators must adapt to changing traveller needs and work closely with owners. He added that balancing new hotel supply with demand while maintaining commercial performance and service standards is critical.

Developing local talent is considered fundamental to the sector's long-term success. Hyatt participates in the Saudi Ministry of Tourism's Hospitality Ambassadors Programme, which provides Saudi talent with opportunities to gain international hospitality experience and develop their skills. This focus on human capital development aligns with the broader national goal of creating sustainable employment in the tourism sector.