The Gulf Cooperation Council (GCC) countries are projected to deliver close to 126,000 new hotel rooms by 2030, increasing total hotel room inventory in the region to approximately 616,000 keys, according to research from Cavendish Maxwell. The current operational supply stands near 490,000 rooms, with 43% of these located in the United Arab Emirates (UAE).
As of August 2026, the UAE had 212,135 hotel rooms in operation, including 151,380 in Dubai. Saudi Arabia leads the region’s hotel pipeline with nearly 94,500 new rooms planned, raising its total to approximately 275,300 by 2030. The UAE follows with more than 23,000 rooms
scheduled to open, over 11,180 of which are in Dubai.
Occupancy and Average Daily Rate Trends in Early 2026
Hotel occupancy rates across the GCC declined year-on-year from January to August 2026. Saudi Arabia maintained the highest occupancy at 59%, with a decrease of just under 3%. Bahrain recorded the lowest occupancy rate at just below 37%, experiencing a 31% decline. The UAE averaged 59% occupancy, down almost 25%, with Dubai specifically seeing a 27% drop. Kuwait’s occupancy was around 38%, down 18%, while Oman and Qatar reported occupancies of 48% and 60%, respectively, both down 13%.
Despite the declines in occupancy, average daily rates (ADR) remained stable or
increased slightly in some markets. Kuwait’s ADR rose 3.2% to just under USD 199, Oman’s increased by nearly 1% to USD 142, and Saudi Arabia’s increased by 0.6% to around USD 199. Qatar’s ADR declined 4.5% to USD 117. UAE’s ADR decreased 7% to USD 165, with Dubai’s ADR falling nearly 9% to just below USD 168.
Market Influences and Sector Resilience
Regional tensions beginning in March 2026 disrupted international air connectivity, reducing traveller confidence and suppressing demand for GCC hotels. Saudi Arabia’s hospitality market showed resilience owing to strong domestic tourism, religious pilgrimage activities, and initiatives linked to its Vision 2030 strategy. Religious tourism
in Saudi Arabia supports a steady demand base less sensitive to international travel disruptions.
The UAE, particularly Dubai, was more vulnerable due to reliance on long-haul international visitors. Restoration of air connectivity is seen as a key factor in market recovery, supported by the UAE government’s relief package exceeding USD 680 million and intensified destination marketing efforts.
Official Analysis on Market Conditions and Recovery
Vidhi Shah MRICS, Director and Head of Commercial Valuation at Cavendish Maxwell, observed that while GCC hospitality entered 2026 with strong momentum, regional tensions triggered a sharp demand shock impacting air travel and market confidence. Saudi Arabia’s performance benefited from domestic tourism and
religious pilgrimage, positioning it relatively well for the final quarter of 2026.
She noted the UAE’s market, mainly Dubai’s, was significantly affected due to its dependence on international travel. Dubai’s occupancy for the peak travel season is forecast between 60% and 66%, with an ADR range from USD 163 to USD 183, both below 2025 figures.
Oman had a strong first half in 2026 before a downturn in the second quarter. The recent Khareef season and the approaching winter period are expected to support the second half demand, with limited new supply curbing competitive pressure. Qatar’s international visitor market is
normalizing, aided by upcoming events like the Qatar MotoGP and Formula 1 Grand Prix, which are predicted to bolster occupancy and ADR.
Shah emphasized that recovery pace across the GCC will depend on regional conditions, normalization of air travel, and visitor demand strength. Variations will continue based on market composition, seasonal factors, event schedules, and changes in supply.
