FHS Saudi Arabia Pre-event: Outlook for Hospitality Investments | News

Saudi Arabia will deliver 358,000 new hotel rooms to meet rising tourism demand and prepare for major upcoming global events, unleashing a wealth of investment opportunities in the Kingdom’s hospitality industry.

Future Hospitality Summit (FHS) Saudi Arabia, taking place from June 22 to 24 at Mandarin Oriental Al Faisaliah in Riyadh, will bring together investors, developers, operators and policymakers at a defining moment for the region’s hospitality sector. FHS is positioned as the Kingdom’s premier deal-making and investment platform, connecting capital with opportunity. The 2025 edition welcomed more than 1,100 industry leaders and generated more than $1.6 billion in business opportunities, cementing the platform’s role as a major deal-making forum. Last year, 254 investors visited FHS Saudi Arabia and managed $5.61 trillion in assets.

Ahead of the event, seasoned hospitality leaders share key insights on the opportunities, challenges and priorities for KSA investments.

With advice from Dimitris Manikis, President, EMEA, Wyndham Hotels & Resorts; David Thomson, Senior Vice President – ​​Development, The First Group Hospitality; Muin Serhan, Managing Director of Amsa Hospitality; and Dory Mouawad, operations director at Ewaa Hotel Group.

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The prospects
“KSA is a clear example of a market where tourism development is anchored by a long-term national strategy. Through Vision 2030, Saudi Arabia has created a roadmap for tourism growth, supported by infrastructure investments, regulatory reform and large-scale destination projects that expand tourism far beyond traditional gateway cities and create new hospitality markets,” said Dimitris Manikis, President, EMEA, Wyndham Hotels & Resorts. “While the region is currently experiencing a period of uncertainty, KSA’s long-term fundamentals remain strong.”
David Thomson, Senior Vice President – Development, The First Group Hospitality, is positive about KSA’s hospitality prospects beyond 2026. “Expo 2030 and Vision 2030 initiatives are driving sustainable momentum. As a third-party operator, we are investing heavily in growing our brand footprint,” he says.

The big opportunity

Although 75% of emerging hotel rooms are in the luxury segment, a major investment opportunity lies in the mid-range segment, experts believe.
Muin Serhan, Chief Executive Officer of Amsa Hospitality says: “The biggest opportunity is scalable midscale in cities with real demand drivers. Well-positioned, efficiently operated hotels can deliver stable occupancy, repeat customers and strong returns without relying on luxury rate assumptions.
Dimitris Manikis echoes this view, pointing out that the mid- and upper-middle segments represent the largest demand pools globally, as they serve a wide range of travelers while offering developing economies that are more accessible to investors.
For Dory Mouawad, operations director of Ewaa Hotel Group, a major opportunity lies in extended-stay and mixed-use developments that meet long-stay, corporate and lifestyle demand with superior margins.
The challenges
According to David Thomson, timelines and oversupply are among the potential challenges facing the sector in the coming years. “Large development pipelines require careful phasing. If openings are too close together in specific locations, performance can be pressured in the short to medium term,” he says.

This view is shared by Muin Serhan, who adds that costs, timelines and staffing needs can change quickly, having a greater impact on returns than most models assume.

The evolving model

When it comes to the evolution of hotel development models, franchising is at the core of Wyndham’s model. “We see a strong push toward asset-light structures, especially franchising, which allows owners to maintain control of their assets while benefiting from brand recognition, global distribution systems, loyalty platforms and operational support,” says Dimitris Manikis.

Dory Mouawad also believes that models are shifting towards asset light, flexible agreements with lighter management contracts, performance-related fees and selective franchising.

The priorities

Investors are prioritizing resilience, returns and growth potential (or a combination of all three) in the current environment, experts say.

Muin Serhan noted: “Investors still want growth, but with resilience. They are prioritizing assets that perform across cycles, not just during periods of high demand. That means strong location fundamentals, operational efficiencies, and brands and operators that can protect margins and maintain quality at scale.”

David Thomson added: “Today’s investors are looking for resilient business models that can weather market cycles. Returns remain important, but operational flexibility and long-term growth potential are increasingly important in investment decisions.

The future-proof strategy

Technology? Resistance? Sustainable ROI? What will a future-proof hotel investment strategy look like in 2030?

For Dimitris Manakis, it’s a combination of disciplined development, strong brand partnerships and alignment with long-term tourism strategies – such as KSA Vision 2030 – while ensuring owners benefit from global distribution, technology and loyalty ecosystems that drive consistent demand.

Muin Serhan says investors should back projects with proven demand factors, flexible asset design and operators that can protect margins so that performance remains strong in normal times, not just when markets are booming.

Dory Mouawad believes a strategy that is future-ready is technology enabled, demand diversified, operationally lean and built for long-term cash flow resilience. This view is echoed by David Thomson, who cites disciplined capital allocation and a clear focus on sustainable ROI, carefully balancing supply and market fundamentals.