The Gulf Cooperation Council (GCC) countries will add nearly 126,000 new hotel rooms by 2030, increasing the region’s total hotel room inventory to approximately 616,000 keys, according to research from hospitality consultancy Cavendish Maxwell.
The six GCC states include the United Arab Emirates (UAE), Saudi Arabia, Oman, Bahrain, Kuwait and Qatar. Currently, the GCC has close to 490,000 operational hotel rooms, with the UAE holding around 43% of that supply. As of August 2026, the UAE’s total hotel keys stood at 212,135, including 151,380 in Dubai.
GCC Hotel Supply and Pipeline by Country
Saudi Arabia is the largest contributor to the future hotel supply with nearly 94,500
rooms planned for delivery by 2030. This will bring the Kingdom’s total hotel room inventory to about 275,300 keys. The UAE follows with over 23,000 rooms in the pipeline, roughly 11,180 of which are set for Dubai.
Bahrain, Oman, Kuwait and Qatar also contribute to the pipeline, but on a smaller scale compared to Saudi Arabia and the UAE. The expansion will increase the overall GCC hotel stock by about 25% when completed.
Hotel Occupancy and Rate Trends January–August 2026
Occupancy rates across all GCC countries declined year-on-year during the first eight months of 2026 amid regional geopolitical tensions disrupting international air travel. Saudi Arabia recorded the
highest occupancy rate at 59%, with a minor year-on-year decrease under 3%.
The UAE averaged 59% occupancy, down approximately 25%, with Dubai experiencing about a 27% drop. Bahrain registered the steepest decline, with occupancy falling 31% to roughly 37%. Kuwait had 38% occupancy, down 18%, Oman 48%, down 13%, and Qatar 60%, down 13%.
Average Daily Rate Performance
Despite occupancy declines, average daily rates (ADRs) largely held firm or increased slightly in Kuwait, Oman, and Saudi Arabia. Kuwait’s ADR was just below $199, up 3.2% year-on-year. Oman’s ADR grew nearly 1% to $142, while Saudi Arabia’s ADR increased 0.6% to about $199.
Conversely, Qatar’s
ADR fell 4.5% to $117, and the UAE’s ADR dropped 7% to $165. In Dubai, the ADR declined nearly 9%, settling just under $168. Hotel operators prioritized maintaining room rates over volume amid weaker occupancy.
Market Impact and Recovery Outlook
Regional tensions starting in March 2026 disrupted international travel and dampened traveler confidence across the GCC. The UAE, particularly Dubai, was more affected due to reliance on long-haul international arrivals. Saudi Arabia’s hospitality sector showed more resilience, supported by domestic tourism, pilgrimage activity, and continued development under its Vision 2030 plan.
Religious tourism in Saudi Arabia provides a structural demand less impacted by global travel
disruptions. The UAE government has introduced a relief package exceeding $680 million to aid recovery, with restoration of air connectivity being critical for improving occupancy and average rates.
Dubai’s occupancy during the peak travel season is forecast between 60% to 66%, with ADR expected to range from $163 to $183, below 2025 levels. Oman, after a strong start to 2026 and a sharp second quarter drop, anticipates increased demand supported by the Khareef season and upcoming winter tourism, with supply growth remaining limited.
Qatar’s international visitor market is normalizing, aided by events such as the Qatar MotoGP and Formula 1
Grand Prix, which are expected to bolster occupancy and ADR in the latter half of the year.
Improvement throughout the GCC hospitality market will depend on the restoration of normal air travel, regional stability, and the strength of returning visitor demand. Market recovery timelines will vary based on source-market composition, seasonality, events schedules, and supply dynamics.
