Serviced apartments (hospitality units) feasibility study
Latest regulatory change: 2026 · reviewed 2026-11-05
Furnished residential units let by the night or by the month under a hospitality facility licence from the Ministry of Tourism.
- 3,090Serviced apartment and other facilities at the end of 2025[3]
- 55.9%Occupancy rate in Q4 2025[3]
- SAR 207Average daily rate per unit[3]
Latest regulatory and market changes
- 2025Licensed hospitality facilities reached 5,326 by the end of the second quarter, up 58%, of which 2,527 were serviced apartments and other facilities.[4]
- 2026The Ministry of Tourism published a draft minimum staffing level: one worker per 5 rooms in first-class serviced apartments and per 8 in economy ones, with measurement and penalties starting on 1 January 2027.[2]
- 2026The Tourism Hospitality Facility Regulation was issued: a licence of up to 3 years that requires a Commercial Registration, a municipal licence, a Civil Defence permit and Shomoos registration, with guest rights when check-in is delayed.[1]
Why now
- Saudi Arabia recorded about 123 million domestic and inbound tourists in 2025, up nearly 6% on 2024.[2]
- Licensed rooms in apartments and other facilities reached 100,303 at the end of Q3 2025, led by Riyadh and then Makkah.[5]
3,090serviced apartment and other facilities at the end of Q4 2025, making up 52% of licensed hospitality facilities, according to the General Authority for Statistics (GASTAT).[3]
The idea and business model
A building, or part of one, containing furnished apartments that provide paid accommodation to guests with basic operating services. Income comes from nights let and their rates, and from monthly stays, corporate contracts and additional services.
Model: Services on a fixed site
Project economics
Revenue formula
Sales channels
- Online booking platforms
- Direct bookings
- Corporate contracts and monthly stays
Largest cost items
- Building rent or ownership cost
- Furniture and fit-out
- Salaries under the minimum staffing level
- Platform commissions, utilities and maintenance
Decisive indicators we measure
- Occupancy rate
- Average daily rate
- Revenue per available unit
- Average length of stay
Relevant authorities
- Ministry of Tourism: licensing, classification and inspection of the hospitality facility
- Ministry of Municipalities and Housing (MoMAH) via Balady: municipal licence for the building
- Civil Defence: safety permit as a condition of licensing
- Ministry of Commerce: Commercial Registration (CR)
- Ministry of Interior via the Shomoos system: guest data registration
What needs your attention
- The minimum staffing level raises operating costs and is measured from 2027.
- The average daily rate fell in Q4 2025 as new supply accelerated.
- The regulation requires refunds or an alternative when check-in is delayed or services are interrupted.
What a Serviced apartments (hospitality units) study calculates for you
- Number, mix and target classification of units
- Occupancy and rates by season in the city
- Labour cost under the minimum staffing ratios
- Furnishing and fit-out cost per unit
- Break-even occupancy rate
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.
- لائحة مرفق الضيافة السياحيأم القرى · 2026-09
- «السياحة» تقترح ربط التوظيف بالتصنيف.. 3 عاملين لكل غرفة فندقيةعكاظ · 2026-08
- «السياحة السعودية» توفر وظائف لـ1.030.574 عاملاًعكاظ (عن الهيئة العامة للإحصاء) · 2026-04
- 643 ريالاً متوسط سعر الغرف الفندقية.. ونمو عدد المرافق 58% في الربع الثاني 2025عكاظ (عن الهيئة العامة للإحصاء) · 2025-10
- 100 ألف غرفة فندقية مرخصة والرياض ومكة الأعلىالوطن · 2026-03
Last reviewed: 4 November 2026. This page introduces the activity; detailed figures belong in the study.