Chalets and rest houses (istirahas) feasibility study
Latest regulatory change: 2026 · reviewed 2026-11-05
A chalet or rest house with a pool and seating areas, let by the day or night to families and for occasions.
- 8,617Holiday home registrations in Q2 2025[3]
- 42%Annual growth in registrations[3]
- 227Criteria for classifying holiday homes[3]
Latest regulatory and market changes
- 2023The Ministry of Tourism adopted rules for private hospitality facilities: Saudis may let their units to tourists, with a limit of 3 permits per property and a term of no more than one year.[1]
- 2024Saudi Arabia issued 8,357 licences for private hospitality facilities, up 333% on the previous year.[2]
- 2026The Ministry of Tourism set 227 criteria for classifying holiday homes, covering surveillance, lighting, emergencies and guest data linkage.[3]
- 2026The Tourism Hospitality Facility Regulation was issued; it covers any place offering paid overnight stays to tourists and requires a Commercial Registration, a municipal licence, a Civil Defence permit and Shomoos registration.[5]
Why now
- Active registrations for hospitality unit booking activities rose 32% to 5,099.[3]
- Applications for tourism licences rose about fourfold after Saudi Arabia won the right to host the 2034 FIFA World Cup.[2]
8,617Commercial Registrations for holiday homes in Q2 2025, up 42% from 6,063 a year earlier, according to the Ministry of Commerce.[3]
The idea and business model
A standalone hospitality unit with leisure facilities such as a pool and garden, let by the night or the day to families and groups. Income comes from nights let, weekend and seasonal rates, and event bookings.
Model: Services on a fixed site
Project economics
Revenue formula
Sales channels
- Holiday home booking apps
- Direct bookings
- Event and group bookings
Largest cost items
- Land and construction, or rent
- Pool and facilities fit-out
- Cleaning, maintenance and utilities
- Platform commissions
Decisive indicators we measure
- Weekend occupancy
- Weekday occupancy
- Average nightly rate
- Turnover cost between bookings
Relevant authorities
- Ministry of Tourism: holiday home licence or private hospitality permit, and classification
- Ministry of Municipalities and Housing (MoMAH) via Balady: municipal licence
- Civil Defence: safety and emergency permit
- Ministry of Commerce: Commercial Registration (CR) for holiday homes
- Ministry of Interior via the Shomoos system: guest data registration
What needs your attention
- Pool and garden safety requirements are part of the classification criteria.
- Demand is seasonal and concentrated at weekends and during holidays.
- The draft minimum staffing level covers holiday homes at the same ratios as serviced apartments.
What a Chalets and rest houses (istirahas) study calculates for you
- Expected occupancy at weekends versus other days
- Seasonal and holiday pricing
- Cost of building or upgrading to meet classification requirements
- Cost of pool safety and surveillance
- Break-even point in nights
Every one of these figures appears in your study with its source and date, built on your location and capital, with a clear line between documented facts and assumptions.
Sources
Most sources are Saudi government and press pages in Arabic; titles are kept in their original language so you can find them.
- «السياحة»: السماح للسعوديين بتأجير وحداتهم السكنية للسياحعكاظ · 2023-01
- Saudi Arabia sees 333% surge in private hospitality licenses amid tourism boomArab News · 2025-04
- 227 معياراً لتنظيم بيوت العطلات في موسم الصيفالوطن · 2026-06
- «السياحة» تقترح ربط التوظيف بالتصنيف.. 3 عاملين لكل غرفة فندقيةعكاظ · 2026-08
- لائحة مرفق الضيافة السياحيأم القرى · 2026-09
Last reviewed: 4 November 2026. This page introduces the activity; detailed figures belong in the study.