Diriyah Company Awards SAR 2.729 Billion in Construction Contracts for Hotels and Branded Residences at Diriyah Square
Diriyah Company has awarded two construction contracts worth a combined SAR 2.729 billion ($727.9 million) to build five luxury hotels and three branded hotel-residence buildings in Diriyah Square, the company announced on Oct. 5, 2026. The awards advance the hospitality and residential components of the Saudi Arabian destination development.
Jerry Inzerillo, group chief executive of Diriyah Company, said the awards mark a new milestone in expanding the group of luxury branded hotels and serviced apartments in Diriyah.
Diriyah Company Contract Details
The first contract, valued at SAR 1.324 billion, covers three hotels and two residential projects. It went to ManMAG JV, a consortium of Man Enterprise Al Saudia LLC and Al Majal Al Arabi Group. The second contract, valued at SAR 1.406 billion, went to Urbacon Saudi Company S.P.C. and covers three hotels and one residential project.
Together, the contracts include building facades, construction works, interior finishes, air conditioning, electrical and plumbing systems, and external works for all facilities. The five hotels will have 413 luxury rooms, and the package also includes 34 branded hotel apartments.
The company's description of five hotels does not match the contract-by-contract breakdown, which lists three hotels under each award. The company's headline figures for the package are five hotels, three residential buildings, 413 rooms and 34 branded units.
Inzerillo on Diriyah Square's Hospitality Mix
Inzerillo said the five hotels, once complete, will offer visitors a distinctive experience in the heart of Diriyah Square, which is designated as fully pedestrian. He said Diriyah Square will include more than 400 retail, dining and luxury brands in an environment inspired by Najdi architecture, and that the hospitality offering supports Diriyah's positioning in tourism, hospitality and entertainment.
The awards are part of a series of construction projects aimed at reaching about 34 luxury hotel brands across the Diriyah master plan and the Wadi Safar project. Some of the international hospitality brands will enter the Saudi market for the first time, the company said.
Contractors' Existing Diriyah Work
Both contractors already hold other Diriyah contracts. Urbacon Saudi is building four hotels, the equestrian and polo club in Wadi Safar, and other assets within a SAR 8 billion project. Man Enterprise Al Saudia and Al Majal Al Arabi Group won the SAR 917 million contract for the Grand Mosque in Diriyah. Urbacon Saudi also took part in the earlier Waldorf Astoria superblock award.
Wider Diriyah Development Pipeline
The award follows several other large commitments in Diriyah:
- A contract of about SAR 2.7 billion for the Waldorf Astoria superblock, a mixed-use project with a 160-room hotel, 39 suites, one presidential suite and 47 branded residences.
- A joint development agreement between Diriyah Company and Midad Real Estate Investment and Development Company for a Four Seasons hotel and private residences, representing about SAR 3.1 billion of investment, with a 159-room hotel.
- A SAR 2.249 billion construction contract awarded to Salini Saudi Arabia for Diriyah Square, covering 73 buildings and about 400 shell-and-core retail units.
- A SAR 2 billion financing agreement with Arab National Bank to support branded residential developments in Diriyah and Wadi Safar.
Market Context
Saudi Arabia is expanding hotel capacity to support tourism and economic diversification. National hotel occupancy averaged 63.4% from January through April 2026, with an average daily rate of SAR 754 and revenue per available room of SAR 478, according to Knight Frank. The kingdom had about 615,862 licensed rooms in the first quarter of 2026, including 506,005 hotel rooms, based on General Authority for Statistics data. The 413 rooms in this package represent a small share of national supply but sit at the luxury and branded end of the market.
Diriyah Company said hotels and residences play a central role in enabling the destination to attract 100,000 residents and 50 million visits annually once the SAR 237 billion project is complete. The company has also said the destination could contribute roughly SAR 70 billion to Saudi Arabia's GDP and create around 180,000 jobs at completion.
Outlook
The contracts show Diriyah Company advancing hotels, branded residences, retail and cultural assets at the same time rather than developing them as standalone properties. The commercial case rests on drawing enough visitor volume and spending to support premium room rates, restaurant and retail demand, and absorption of branded residential inventory.
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