Accor’s hotel portfolio in the Gulf region is demonstrating two distinct market performances in 2026, as leisure-driven resorts outperform city hotels reliant on corporate travel. The company’s recovery reflects varying demand patterns amid geopolitical tensions.
UAE City Hotels Reduce Rates for Occupancy
During August and September 2026, Accor’s city hotels in the United Arab Emirates lowered room rates by 15% to 20% to sustain occupancy levels within 5% of their targets. This rate reduction was necessary despite the challenging demand environment and mainly affected urban properties.
Leisure Demand Supports Gulf Resort Growth
By contrast, Accor’s resorts in the Gulf, including the Mövenpick Resort Al Marjan Island in Ras Al Khaimah, UAE, are experiencing
stronger average daily rates, driven by a rapid return of leisure travelers. The leisure segment is outperforming corporate business, which remains weak across UAE and Saudi Arabian city hotels.
Hotels in Saudi Arabia’s major cities of Jeddah and Riyadh are also reporting slightly lower performance compared to the previous year, reflecting subdued corporate travel demand.
Duncan O’Rourke, Accor’s CEO for premium, midscale, and economy brands across 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.”
The divergent performance corresponds with
the impact of the U.S.-Iran conflict, which has reshaped travel demand in the Gulf, accelerating leisure travel recovery while corporate trips lag behind.
This bifurcation forces UAE city hotels to offer lower rates to attract guests, while resorts benefit from stronger pricing power fueled by leisure visitors’ return.
