The Gulf Cooperation Council (GCC) region is set to increase its hotel room supply by nearly 126,000 keys by 2030, boosting the total inventory across the six member countries to approximately 616,000, according to data from Cavendish Maxwell.
As of mid-2026, the GCC had nearly 490,000 hotel rooms in operation. The United Arab Emirates (UAE) accounts for around 43% of these rooms, totaling 212,135 keys, with Dubai alone holding about 151,380 keys as of August 2026. Saudi Arabia (KSA) leads the new development pipeline with almost 94,500 rooms planned, bringing its total to nearly 275,300 rooms by 2030. The UAE
has over 23,000 rooms in the pipeline, including 11,180 in Dubai.
GCC Occupancy and Average Daily Rate Trends in 2026
Hotel occupancy rates in the GCC fell during the first eight months of 2026 compared with the same period in 2025, with significant variance across countries. Saudi Arabia and the UAE each recorded occupancy of 59%, with Saudi Arabia’s drop at just under 3% and the UAE seeing declines close to 25%. Dubai’s occupancy declined by 27%. Bahrain experienced the steepest occupancy fall at 31%, with an average rate under 37%. Other occupancy rates were approximately 38% in Kuwait (down 18%), 48% in Oman (down 13%), and 60% in
Qatar (down 13%).
Average daily rates (ADR) reflected a mixed performance. Kuwait’s ADR rose by 3.2% year-on-year to just below US$199. Oman increased nearly 1% to US$142, and Saudi Arabia’s ADR rose 0.6% to around US$199. Conversely, the UAE’s ADR fell 7% to US$165, with Dubai’s ADR dropping nearly 9% to just under US$168. Qatar’s ADR declined 4.5% to US$117.
Impact of Regional Tensions and Recovery Outlook
Renewed regional tensions starting in March 2026 triggered a pronounced demand shock in the GCC hospitality sector, disrupting international air connectivity and reducing traveller confidence. This disruption disproportionately affected the UAE, particularly Dubai, which relies heavily on long-haul international travel.
Saudi Arabia’s hotel market was less impacted due to strong domestic tourism and pilgrimage activity, anchored by ongoing initiatives under Vision 2030. Religious tourism in Saudi Arabia provides a stable demand base less affected by international travel disruptions. This contributed to Saudi Arabia’s comparatively better performance heading into the final quarter of 2026.
The restoration of international air connectivity is critical for the UAE’s recovery, supported by a government relief package exceeding US$680 million and intensified destination marketing efforts. Dubai’s occupancy is forecasted to range from 60% to 66% in the last quarter of 2026, with ADR expected between US$163
and US$183, though both indicators remain below 2025 levels.
Oman showed strong performance early in 2026 but experienced a decline in the second quarter. The recent Khareef season and the forthcoming winter months are expected to sustain demand in the latter half of the year. Qatar’s visitor market is normalizing, with international events such as the Qatar MotoGP and Formula 1 Grand Prix anticipated to support occupancy and average rates.
Forecasts and Market Conditions
The pace of GCC hospitality sector recovery depends on regional stability, normalization of air travel, and returning visitor demand. Variations will persist between countries due to differing source markets, seasonality,
event calendars, and supply conditions. Hotel operators have concentrated on safeguarding rate levels despite volume reductions to maintain average daily rate stability.
These findings and projections were presented by Cavendish Maxwell, a real estate advisory and hospitality property consultancy, at the 2026 Future Hospitality Summit World.
