Saudi Arabia Unveils Plans for Dual Hotel Project at Jeddah’s Sports Hub

The Ministry of Sport in Saudi Arabia has signed a major agreement to develop two new hotels within King Abdullah Sports City in Jeddah. The project, a collaboration between public and private entities, is expected to significantly enhance the city’s appeal as a global sports and tourism destination while supporting the Kingdom’s Vision 2030 objectives.

The two hotels will occupy a 16,000-square-meter site inside the sports complex and offer a total of 585 guest rooms. Once complete, the hotels will not only serve fans, athletes, and event organizers but also bolster Jeddah’s capacity to host large-scale international sporting and cultural events.

Key Players Behind the Development

The Ministry of Sport formalized the agreements with several strategic partners during an official signing ceremony attended by Badr Al-Juraissi, Acting Director-General of Investment at the Ministry. The partnership brings together expertise in real estate development, architecture, engineering, and international hospitality management.

• Kushan Real Estate Development Co. will oversee the construction and delivery of the two hotel properties.
• Zuhair Fayez Partnership, a leading architectural and engineering consultancy in the region, has been tasked with the design and technical execution of the project.
• IHG Hotels & Resorts, a global hotel group with brands like InterContinental and Crowne Plaza under its portfolio, will manage the hotels' operations, ensuring high international standards and guest service excellence.

Vision 2030 and Saudi Arabia’s Sports Evolution

This hospitality investment aligns directly with Saudi Arabia’s Vision 2030, a nationwide initiative to diversify the economy beyond oil by promoting sectors such as tourism, sports, and entertainment. Over recent years, the Kingdom has rapidly expanded its portfolio of international sporting events, including Formula 1 races, heavyweight boxing matches, and global football tournaments.

King Abdullah Sports City, already a centerpiece of Saudi Arabia’s sports infrastructure, will further benefit from this hotel development by becoming a more integrated, year-round destination. The sports city currently hosts football matches, athletic events, and concerts, drawing thousands of visitors per event. The addition of on-site accommodation will eliminate logistical constraints and improve the overall visitor experience.

Read more: Saudi Arabia to Build 15 Stadiums for 2034 FIFA World Cup

Hotel Facilities Designed for Versatility and Scale

The two hotels will feature a wide range of facilities tailored to meet the needs of athletes, spectators, and business travelers alike. Planned amenities include:

• Athlete-focused rooms and recovery zones
• State-of-the-art fitness centers and swimming pools
• Dedicated fan zones with viewing lounges and entertainment areas
• International cuisine restaurants and dining venues
• Modern retail outlets
• Meeting rooms, conference halls, and event spaces for corporate functions

The hotels are expected to cater not only to event-linked demand but also to year-round tourism and corporate hospitality. The integration of sports-centric services alongside premium leisure and business offerings positions the project as a pioneering model for mixed-use sports tourism developments in the region.

Real Estate and Market Implications

From a real estate perspective, the project is poised to create new opportunities across multiple segments. It reflects the Saudi government’s commitment to enabling private investment in public assets and advancing infrastructure that supports sustainable urban development.

Jeddah’s hotel market, already one of the fastest-growing in the Kingdom, stands to benefit significantly from the increased room inventory and the draw of new, high-traffic international events. Furthermore, the rise in year-round tourism could stimulate surrounding commercial activity, from retail to residential and logistics services.