RIYADH: Saudi Arabia’s hospitality sector saw a boost on the opening day of the Future Hospitality Summit, with more than 1,000 new hotel keys announced across several high-profile agreements.

Key signings on Sunday included new hotel developments in Jeddah, Madinah, and Qassim, underscoring sustained investor confidence in the Kingdom’s ambitious tourism expansion plans.

Among the notable announcements was BWH Hotels’ partnership with Optimal Real Estate and Rsoukh Trading Co. to develop five new properties across Jeddah and Madinah. The move signals a major step forward in the group’s regional expansion strategy.

“We signed five hotels between Jeddah and Madinah,” said Mujahid Pasha, director of development Middle East at BWH Hotels, in an interview with Arab News on the sidelines of the event.
“The partnership only brings five hotels, but these five hotels represent about 1,000 keys in total,” Pasha added.

The centerpiece of BWH’s announcement is a 540-room Best Western Premier property in Madinah, located just 600 meters from the Prophet’s Mosque.
“This is one of the big hotels we just signed today,” said Pasha. “We talk about an upper, upscale offering, which is our Best Western Premier brand.”

Another highlight is a luxury WorldHotels Elite property on King Road in Jeddah — often referred to as the “Golden Mile” due to its prime location. The development will include 215 guest rooms and approximately 300 office units as part of a broader mixed-use complex.

“WorldHotels is our luxury and high-end offering,” said Pasha. “The King Road doesn’t have any luxury offerings, so we wanted to use that brand.”

Three additional hotels will be introduced under BWH’s SureStay brand—its economy and midscale portfolio—including two SureStay Studios and one SureStay Hotel.

“These brands are not in the region as well. The first in the region will be in Saudi Arabia,” Pasha noted, confirming that two of the SureStay properties will be in Jeddah and one in Madinah.

BWH Hotels, which operates 18 brands globally, is leveraging its diverse portfolio to target a broad range of travelers and budgets.

In another development, Amsa Hospitality announced a new four-star hotel project in Qassim in collaboration with Alkayan Alarabi. The property will be located within the Al-Kayan Avenue mall on Al-Imam Al-Bukhari Road.

“This is a new hotel, newly developed, with 174 keys including suites, meeting rooms, gym, two restaurants, and a spa,” said Amsa CEO Muin Serhan.

Designed to serve both business and leisure travelers, “the hotel is currently under development and is expected to complete development by the end of this year with official operations expected later in the first quarter of next year,” Serhan added.

Rounding out the day’s announcements, IHG Hotels & Resorts and Ashaad Co. signed an agreement to develop three new hotels in Jeddah and Alkhobar, further adding to the Kingdom’s growing hospitality portfolio.

Beyond real estate deals, the summit spotlighted the industry’s growing focus on talent development. Organizers launched the inaugural NextGen Investment Forum, aimed at addressing workforce challenges in the tourism and hospitality sectors.

“For the first time at FHS Saudi, we proudly introduce the NextGen Investment Forum, a new platform dedicated to addressing one of the most critical issues and urgent challenges in our history—investing in our people,” said Jonathan Worsley, chairman and CEO of The Bench, which organizes the hospitality event.

Worsley emphasized the hospitality sector’s global economic impact.
“Hospitality and tourism is a massive industry, a massive force in today’s contribution to global gross domestic product,” he said.
“It’s the world’s third largest economic sector,” Worsley added, citing 357 million jobs worldwide and a $1.1 trillion contribution to global GDP.

According to summit figures, the industry will require 100 million additional jobs over the next five years to meet rising demand. In Saudi Arabia alone, a $110 billion investment in the sector is set to deliver 362,000 hotel rooms by 2030.

“We need an additional 1 million jobs in the Kingdom by 2030,” Worsley stated. “The foundations of sustainable growth must begin with education and training.”

The NextGen forum aims to bridge the gap between education and industry by fostering dialogue on training, investment, and talent retention.
“We’re bridging the gap between academia and what the industry needs—exploring funding and investment opportunities in hospitality education and enhancing the industry’s appeal to retain talent and reduce turnover,” Worsley said.

During a panel discussion on global tourism trends, Harry Theoharis, member of the Hellenic Parliament and candidate for secretary-general of the UN World Tourism Organization, praised Saudi Arabia’s transformation.

“Saudi Arabia’s tourist plans, if anything, are one of the biggest success stories,” he said.
“We’ve seen Saudi Arabia transform itself from a very specific and niche market of religious tourism, which was the staple of Saudi Arabia, to a very vibrant, very energetic, very young-oriented destination attuned to the wills of the young population,” Theoharis added.

More than 1,000 global tourism leaders, investors, and operators have convened in Riyadh for the Future Hospitality Summit, held from May 11–13 at the Mandarin Oriental Al Faisaliah. Centered on the theme “Where Vision Shapes Opportunity,” the event features panels, investment showcases, and strategic signings shaping the future of hospitality in Saudi Arabia and beyond.

JEDDAH: Saudi Arabia has completed the first domestically manufactured components for the Terminal High Altitude Area Defense system launcher in Jeddah, marking a significant step forward in the Kingdom’s ongoing efforts to localize its defense industry.

The milestone was highlighted during a recent meeting at Arabian International Co. for Steel Structures in Jeddah, attended by senior defense officials and industry leaders.

Among those present were Tim Cahill, president of missiles and fire control at Lockheed Martin; Nawaf Al-Bawardi, assistant deputy of the General Authority for Military Industries; and Wasim Attieh, president of AIC.

The meeting focused on reviewing progress in the local production of THAAD system components, following a partnership between Saudi Arabia and Lockheed Martin aimed at strengthening local manufacturing capabilities.

The achievement follows two contracts signed during the 2024 World Defense Show in Riyadh, as part of a broader strategy to localize key THAAD components. It builds on previous efforts announced at the 2022 edition of the show, including initiatives to domestically produce missile containers and launch platforms.

In a statement, Lockheed Martin emphasized the significance of the development, noting AIC’s advanced manufacturing capabilities and precision welding expertise.

“It is particularly significant as it demonstrates how the two companies successfully worked to bolster manufacturing expertise, strengthening the country’s defense industrial base while establishing a second source and building resilience for the US supply chain,” the statement said.

Cahill lauded the achievement as a major milestone for both countries. It is a tremendous milestone for the US and Saudi Arabia as both nations work to fulfill the Kingdom’s THAAD procurement, he said.

“Through this program, we’re not only supporting Saudi Vision 2030 and enhancing regional defense capacity, but we’re also generating high-quality manufacturing jobs in the US and strengthening the American defense industrial base, a testament to the value of our partnership with AIC Steel and the Kingdom of Saudi Arabia.”

Attieh praised Lockheed Martin for its cooperation and commitment to the project.

Lockheed Martin has been “an excellent partner,” providing the necessary tools and training to support and advance the localized production of a key component of the THAAD weapon system, he said.

“I look forward to working together to ensure a more secure future for the Kingdom of Saudi Arabia.” He also expressed gratitude to GAMI for its support throughout the project.

Saudi Arabia has steadily increased its defense manufacturing capabilities, with military spending localization reaching 19.35 percent in recent years — up from just 4 percent in 2018. The Kingdom aims to surpass 50 percent by 2030, in line with its Vision 2030 goal to establish a self-sufficient defense sector.

The THAAD system, developed by Lockheed Martin, is a state-of-the-art missile defense platform capable of intercepting and destroying ballistic missiles at both endo- and exo-atmospheric altitudes. It is designed to provide protection against short-, medium-, and intermediate-range threats and is widely regarded for its high success rate in flight tests and operational use.

The continued collaboration between Saudi Arabia and Lockheed Martin underscores the Kingdom’s commitment to building a robust and independent military industrial base while reinforcing its strategic defense alliances.