The Gulf Cooperation Council (GCC) countries are planning to introduce nearly 126,000 new hotel rooms by 2030, increasing the region’s total hotel inventory to approximately 616,000 keys. This expansion represents a 25% increase over the existing supply of close to 490,000 rooms as of 2026, according to insights from Cavendish Maxwell.
As of August 2026, the UAE accounted for about 43% of the existing hotel supply within the GCC, with 212,135 keys operational, including 151,380 in Dubai alone. Saudi Arabia is spearheading the growth with nearly 94,500 new rooms underway, projected to bring its total hotel stock to almost 275,300
keys by 2030. The UAE follows with over 23,000 new rooms in development, including 11,180 in Dubai.
Occupancy and Rate Trends in Early 2026
Hotel occupancy rates across all GCC countries fell in the first eight months of 2026 compared to the same period in 2025. Saudi Arabia recorded the highest occupancy rate regionally at 59%, experiencing a year-on-year decline just under 3%. Bahrain had the lowest occupancy at just under 37%, with the steepest drop of 31%. The UAE reported average occupancy at 59%, down nearly 25%, with Dubai’s occupancy decreasing by 27%. Kuwait’s occupancy stood at approximately 38%, down 18%; Oman’s occupancy was 48%, down
13%; and Qatar’s occupancy was 60%, also down 13%.
Despite lower occupancy, average daily rates (ADR) remained stable or increased in some GCC markets between January and August 2026. Kuwait’s ADR rose 3.2% year-on-year to just below US$199. Oman saw an almost 1% increase to US$142, and Saudi Arabia’s ADR increased 0.6% to around US$199. Qatar’s ADR dropped 4.5% to US$117, while the UAE experienced a 7% ADR decline to US$165. Dubai recorded a nearly 9% drop with ADR just under US$168 during the same period.
Impact of Regional Tensions and Market Dynamics
Regional tensions starting in March 2026 caused a significant demand shock within the GCC
hospitality market. This disrupted international air connectivity and reduced traveler confidence, leading to widespread occupancy declines. Saudi Arabia’s strong domestic tourism and religious pilgrimage under Vision 2030 cushioned its market against international travel disruptions, supporting a relatively better Q4 outlook.
The UAE, particularly Dubai, has been heavily impacted by reduced long-haul international travel exposure. Recovery efforts include a government relief package exceeding US$680 million and intensified destination marketing, with Dubai’s peak travel season occupancy forecast between 60% and 66% and ADR ranging from US$163 to US$183—both below 2025 levels.
Oman entered 2026 as one of the stronger performers before a
sharp slowdown in the second quarter. Its Khareef season and the upcoming winter period are expected to support hotel demand in the latter half of 2026. Qatar’s international visitor market is gradually recovering, with upcoming events such as the Qatar MotoGP and Formula 1 Grand Prix anticipated to boost occupancy and ADR in the region.
Future Outlook and Recovery Prospects
The pace of the GCC hospitality market’s recovery depends on improvements in regional conditions, normalization of air travel, and the return of international visitor demand. Variations in market recovery will be influenced by each country’s source market composition, seasonality, event calendars, and supply factors.
