Serviced Apartment

A serviced apartment is a fully furnished residential unit offered to guests for short or medium stays for a fee, with hotel-type services such as reception, regular housekeeping and linen changes, within a hospitality facility licensed by the Ministry of Tourism. It differs from a furnished apartment let as a home under a residential lease: what matters is the nature of the activity and services, not the presence of furniture. Saudi rules do not use the label "hotel furnished apartment"; instead the Hospitality Facility Regulation issued by Ministerial Decision 2289 dated 19/5/1444H lists two related types: "hotel apartments" (شقق فندقية), classified in star categories, and "serviced apartments" (شقق مخدومة), classified together with chalets (holiday homes) in grades such as first-class and economy. In both cases the operator must be a legal person with a commercial registration covering the activity, a municipal licence and a Civil Defense permit, and the facility must be connected to the Shomoos system; the licence lasts no more than 3 years, renewable, and classification must be requested within 180 days of the licence. The relationship with the guest is governed by the booking document issued by the licensee, not by a residential lease on the Ejar network. The distinction has direct tax and contractual effects: stays in serviced and hotel apartments bear 15% VAT because the VAT Implementing Regulations exclude serviced and temporary accommodation from the residential-lease exemption, whereas a furnished flat let as a dwelling under a residential lease documented on Ejar is VAT-exempt and its documentation fee is SAR 125 per contract year. Since 1 January 2025 booking platforms may not list unlicensed units. Serviced apartments suit business travellers, families and visitors for stays ranging from a few nights to several months.