Hotel101 to Build 10,000 Rooms Across Saudi Arabia

Philippine-based hospitality brand Hotel101 is entering the Middle East market with a major joint venture that will develop 10,000 hotel rooms across Saudi Arabia, in a deal valued at US$2.5 billion or roughly PHP 137.5 billion.

Hotel101 Global signed a partnership agreement with Saudi investment firm Horizon Group on May 28 to launch multiple large-scale projects under its “one room” condotel model, starting with a flagship site in Medina.

Additional projects are slated for Riyadh, Jeddah, Abha and Alula, as part of an aggressive regional rollout supporting Saudi Arabia’s Vision 2030 tourism and infrastructure goals.

“We are inspired by the leaders of Saudi Arabia and their sheer determination and will power to make things happen,” said Edgar “Injap” Sia II, founder of Hotel101 Global and Chairman of DoubleDragon Corporation.

“We believe the Hotel101 concept will be able to make a significant contribution in terms of room keys to complement the 2030 Vision for the Kingdom, and to form part of our global vision of 1 million Hotel101 rooms worldwide,” he added.

The strategic partnership combines Hotel101’s scalable, asset-light condotel model with Horizon Group’s market expertise and network of affiliations, including Alnahla Group and SAMACO.

Horizon Group CEO Abdulrahman Sharbatly said the collaboration would accelerate the development of affordable accommodations tailored to Saudi Arabia’s tourism boom.

“With Hotel 101’s rapid-build model and Horizon’s local know-how, we will add 10,000 quality, affordable rooms across the Kingdom—supporting Vision 2030, creating Saudi jobs, and expanding options for pilgrims, tourists, and business travelers alike,” Sharbatly said.

The signing ceremony in Medina was attended by top executives from both companies, including Hotel101 CEO Hannah Yulo-Luccini and Horizon Group Chairman Khaled Sharbatly, and witnessed by Medina Mayor H.E. Fahad Albuliheshi.

“We feel very fortunate to have found the right local partners to rapidly expand the Hotel101 brand in the Kingdom of Saudi Arabia, which is one of the 25 countries we have identified for the initial expansion of Hotel101,” said Yulo-Luccini.

“We see tremendous opportunities in the Kingdom of Saudi Arabia given the high growth in tourism both domestic and international,” she added.

The expansion comes as Saudi Arabia recorded a milestone 106 million tourists in 2023, comprising 27 million international and 79 million domestic visitors, according to official data.

The sector brought in a total spending of USD 67 billion last year, reinforcing the country’s position as one of the fastest-growing tourism markets globally.

Saudi Arabia’s Vision 2030 aims to attract 150 million tourists annually and transform the Kingdom into a global travel and business hub.

Hotel101’s entry is set to help address the increasing demand for accommodations, particularly in key religious and commercial cities.

Each site will host an average of 500 rooms under the brand’s standardized “HappyRoom” format—designed for efficiency, predictability, and affordability.

Hotel101’s condotel model allows investors to buy units within the hotel, generating rental income while the hotel operates and manages the property—making it a unique hybrid of real estate and hospitality.

This model has proven popular in the Philippines, where Hotel101 has expanded rapidly and attracted strong investor interest due to its predictable revenue streams and low operating costs.

The company’s signature “one room” concept means every Hotel101 property globally offers identical room layouts and amenities, enhancing brand consistency and operational simplicity.

This predictability appeals to both business and leisure travelers, especially in religious destinations like Medina, where consistency and affordability are key.

Horizon Group, led by brothers Khaled and Abdulrahman Sharbatly, is known for aligning with Vision 2030 sectors and building high-impact projects in hospitality and manufacturing.

With demand for rooms driven by religious tourism, business travel, and mega-events such as the Saudi Seasons festivals, the Hotel101-Horizon partnership aims to fill a major supply gap.

The partnership also aims to generate significant employment opportunities for Saudi citizens, in line with the Kingdom’s Saudization efforts under Vision 2030.

Hotel101’s entry into Saudi Arabia marks one of the largest overseas expansions by a Philippine hotel brand and reinforces its broader goal of reaching 1 million rooms worldwide.

The brand has previously announced plans to enter 25 key global markets, leveraging its tech-driven platform and replicable room model to scale efficiently.

Following its initial launch in Medina, construction on additional sites in Riyadh, Jeddah, Abha, and Alula is expected to follow a rapid timeline, with each property targeting key demand clusters in pilgrimage, commerce, and tourism.

Hotel101 Global and Horizon Group are expected to announce additional updates and construction milestones later this year as development progresses.