Accor’s hotel properties in the Gulf region have experienced uneven recovery trends in 2026, with UAE city hotels cutting room rates by 15% to 20% during August and September in order to maintain occupancy within 5% of target levels. Meanwhile, resorts across the Gulf have benefited from stronger room rates as leisure travel demand returns.
Geopolitical Impact Divides Gulf Hotel Market
The disparity in recovery between city hotels and resorts coincides with the ongoing effects of the U.S.-Iran war on travel patterns across the Gulf. Accor hotels in Saudi Arabian cities such as Jeddah and Riyadh are also slightly behind their previous year’s performance, reflecting weaker
corporate business, particularly in the urban segments. Leisure travelers have resumed visits to Gulf resorts faster than corporate travelers have returned to city hotels.
Accor CEO Attributes Differences to Travel Demand Shifts
Duncan O’Rourke, Accor’s CEO for premium, midscale, and economy brands in the Middle East, Africa, and Asia Pacific, said, “It’s the city hotels where we’re down, and that’s just in the UAE. In resorts in the Gulf, the rates are ahead.” He highlighted the importance of corporate travel for city hotels and the faster recovery of leisure travel that benefits resort properties.
Accor’s position confirms a split recovery dynamic in the Gulf hospitality sector as of
early October 2026, showing stronger performance in resort destinations contrasted with ongoing challenges in city locations heavily reliant on business travel.
