Saudi Arabia Proposes Updated Rules for Private Hospitality Facilities

Saudi Arabia has proposed new rules for private hospitality facilities, covering licensing, short-stay limits, advertising, guest privacy, and security obligations. Operators should review their procedures and monitor the final regulation once issued.

Saudi Arabia has proposed updated regulations (hereinafter, the “draft regulation”) for private tourism hospitality facilities, introducing new licensing, operational, and guest-protection requirements for short-stay accommodation providers.

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The draft regulation forms part of the Kingdom’s efforts to strengthen oversight of the expanding tourism accommodation market. The proposed rules would apply to private facilities offering short-term stays, including residential units and other eligible properties used for tourism accommodation.

The draft remains subject to approval and may be amended before its final adoption. However, operators and investors should assess the proposed requirements and identify any changes needed to their licensing, guest-registration, advertising, and facility-management procedures.

Proposed 29-day limit for guest stays

Under the draft regulation, private hospitality facilities would not be permitted to provide accommodation to the same guest for more than 29 consecutive days.

The proposed restriction clarifies the distinction between short-term tourism accommodation and longer-term residential leasing. Operators offering extended stays may need to review their booking policies and ensure that their activities fall within the appropriate regulatory category.

Licensing requirements

The draft regulation prohibits operators from offering accommodation without a valid license. Each license would be valid for one year and renewable, subject to compliance with the applicable requirements.

Eligible applicants would include:

• Saudi citizens;
• foreign property owners; and
• holders of premium residency.

Facilities would need to be located within residential, agricultural, or mixed-use properties. Applicants would also need to meet ownership, insurance, and security-system requirements.

Operators would be required to display the license inside the facility and prevent third parties from using it. Facility data must also be kept up to date.

Advertising and facility management obligations

The proposed rules introduce additional obligations covering the accuracy of advertising materials and the day-to-day management of accommodation units.

Operators would need to ensure that advertisements reflect the actual condition of the property, including its capacity and available services. This requirement is particularly relevant for digital platforms and booking websites, where inaccurate descriptions or images may expose operators to compliance risks.

Businesses holding more than four licenses would also be required to maintain valid maintenance and cleaning contracts. This provision is likely to affect professional operators managing portfolios of short-term rental units.

Guest privacy and security requirements

The draft places a strong emphasis on guest privacy and data protection. Operators would be required to keep guest information confidential and limit access to accommodation units after check-in.

Entry into a unit, or the removal of a guest, would generally be restricted unless authorised under the applicable legal procedures.

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Operators would also be required to verify guests’ original identification documents without retaining copies. Facilities must participate in the Shomoos security system and notify the competent security authorities where unregistered companions are hosted.

These requirements mean that operators must balance security reporting obligations with the need to protect guest information and avoid collecting unnecessary personal data.

Implications for hospitality operators and investors

The proposed regulation is relevant to individual property owners, premium residency holders, foreign investors, and businesses managing multiple tourism accommodation units.

Operators should review whether their properties are eligible for licensing, confirm that advertisements accurately reflect the units being offered, and update internal procedures for guest registration and data handling.

Businesses operating several units should also assess whether they will be required to enter into formal maintenance and cleaning contracts. Professional short-stay accommodation providers may need to introduce more structured compliance systems as the sector becomes increasingly regulated.

Practical steps for operators

Businesses and property owners offering private tourism accommodation should:

• Check whether each property meets the proposed location and licensing requirements.
• Review booking policies to comply with the proposed 29-day limit.
• Confirm participation in the Shomoos security system.
• Ensure advertisements accurately reflect property conditions and capacity.
• Review guest-identification and data-privacy procedures.
• Arrange cleaning and maintenance contracts where required.
• Monitor the adoption of the final regulation and any implementing guidance.

Conclusion

Saudi Arabia’s proposed regulation reflects the Kingdom’s broader efforts to formalise and professionalise its tourism accommodation sector.

The draft introduces clearer rules for short-term rentals while strengthening licensing, operational, privacy, and security requirements. Operators should begin reviewing their current practices, particularly where they manage multiple units or advertise accommodation through online platforms.

The final text may introduce additional details or amendments. Businesses should therefore monitor further announcements and review the approved regulation once issued.

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