Saudi Arabian economy is hydrocarbon based with governmental revenues being heavily reliant on oil exports. However, the dynamics are now shifting from hydrocarbon sector to non-hydrocarbon sector, which includes travel & tourism, hospitality, retail and banking especially after the economic crisis. Hospitality industry has gained a lot of importance in Saudi Arabia. Travel and Tourism (T&T) is one of the key driving forces of revenue for the hospitality industry. The hospitality industry in Saudi Arabia is going through the growth stage. The industry also benefits from perennial flow of religious tourists, with millions of Muslims visiting Saudi Arabia annually for the Hajj pilgrimage. To meet the growing demand, the Government is investing considerably in developing the infrastructure. The increasing budget hotels, use of technological advancement and innovation in the hospitality industry to cross-sell/up-sell products and services, enhances guest experience through personalized services, promotion of halal tourism and leisure tourism are some of the emerging trends impacting the KSA hospitality industry. In this report we have analyzed the KSA hospitality sector and forecasted key hotel metrics for the future. We have assessed the impact of the Travel and Tourism (T&T) sector on the KSA hospitality. The report also discusses the various growth drivers, trends and challenges in the industry.