Countries in the Gulf Cooperation Council (GCC) are expected to increase their hotel room inventory by nearly 126,000 units by 2030, raising the total supply across the region to approximately 616,000 keys. Currently, the GCC’s six member states—United Arab Emirates (UAE), Saudi Arabia, Oman, Bahrain, Kuwait and Qatar—have nearly 490,000 rooms in operation, with the UAE representing about 43% of that total.
Breakdown of New Hotel Supply by GCC Country
Saudi Arabia leads the regional expansion with a pipeline of close to 94,500 new hotel rooms, targeting a total inventory near 275,300 keys by 2030. The UAE follows with over 23,000 additional rooms planned, of which 11,180 are
expected within Dubai. As of August 2026, the UAE’s hotel room count stood at 212,135, including 151,380 located in Dubai.
Hotel Occupancy and Rate Trends in Early 2026
Data from January to August 2026 show hotel occupancy rates falling year-on-year across all GCC nations, reflecting a downturn after a strong start. Saudi Arabia maintained the highest occupancy at 59%, registering a decline just below 3%. Bahrain reported the lowest occupancy, under 37%, alongside the sharpest drop of 31%. The UAE’s occupancy also declined by nearly 25% to 59%, with Dubai’s figure down 27%. Kuwait and Oman had occupancy rates of 38% and 48%, declining by 18% and 13%
respectively, while Qatar recorded a 60% occupancy rate, down 13% from the prior year.
Despite the occupancy declines, average daily rates (ADR) remained generally stable or increased in select markets. Kuwait’s ADR rose 3.2% to just below US$199, Oman saw a 1% increase to US$142, and Saudi Arabia reported a 0.6% rise to approximately US$199. In contrast, Qatar’s ADR dropped 4.5% to US$117, and the UAE’s ADR declined 7% to US$165, with Dubai’s ADR down nearly 9% to just under US$168.
Impact of Regional Tensions and Market Outlook
Regional geopolitical tensions starting in March 2026 caused a significant demand shock in the GCC hospitality market by disrupting
international air connectivity and weakening traveler confidence. This has particularly affected markets dependent on long-haul international visitors, such as the UAE and especially Dubai. Saudi Arabia’s hotel sector demonstrated more resilience due to strong domestic tourism and pilgrimage activity supported by Vision 2030 initiatives. Religious tourism in Saudi Arabia provides structural demand with less exposure to international travel disruption.
Recovery prospects hinge on the restoration of regular air travel and returning visitor demand. Market performance will also depend on factors including the source market mix, seasonality, event calendars, and supply dynamics. Oman, which started 2026 strong before a steep second-quarter
drop, expects the Khareef season and winter period to support demand in the latter half of the year. Qatar’s visitor market is gradually returning to normal, aided by upcoming high-profile events like the MotoGP and Formula 1 Grand Prix, which are anticipated to support both occupancy and ADR levels.
Government Support and Forecasts for Dubai
The UAE government has introduced a relief package exceeding US$680 million to bolster the hospitality sector amid ongoing challenges. Forecasts for Dubai’s average hotel occupancy in the fourth quarter of 2026 range between 60% and 66%, with ADR projected between US$163 and US$183. This recovery is expected to be supported by
the peak travel season and scheduled events, though both occupancy and ADR remain below 2025 levels.
Hotel operators across the GCC appear to have prioritized preserving rate levels over volume during occupancy declines, as evidenced by the relative stability or slight increase in ADR in some markets despite fewer guests.
Limitations on Specific Market Details
Information regarding the brands involved in the planned hotel developments, precise city-level locations beyond Dubai, and exact delivery timelines before 2030 remains unavailable. The detailed components of the government relief package and individual hotel performance data have not been disclosed. Analysis also does not specify causes beyond regional geopolitical events
and air connectivity disruptions.
