The Gulf Cooperation Council (GCC) countries are set to add nearly 126,000 new hotel rooms by 2030, increasing existing accommodation capacity by about 25% and raising total hotel key inventory to approximately 616,000, according to data from real estate consultancy Cavendish Maxwell.
Currently, the GCC’s operational hotel supply stands near 490,000 rooms, with the United Arab Emirates (UAE) accounting for roughly 43% of those keys. As of August 2026, the UAE had 212,135 hotel rooms available, including approximately 151,380 in Dubai alone. Saudi Arabia is leading the expansion pipeline, with around 94,500 new rooms planned, projecting its total hotel room
inventory close to 275,300 keys by 2030. The UAE follows with an anticipated supply increase of more than 23,000 rooms, 11,180 of which are in Dubai.
Occupancy and Average Daily Rate Trends in GCC 2026
Hotel occupancy rates in the GCC declined across all member countries in the first eight months of 2026 compared to the previous year. Saudi Arabia recorded a 59% occupancy, dipping less than 3% year-on-year, while Bahrain posted the lowest occupancy at just under 37%, down 31%. The UAE’s occupancy rate was around 59%, reflecting a drop of nearly 25%, with Dubai seeing a 27% decline.
Other GCC countries experienced mixed impacts: Kuwait’s average occupancy
fell 18% to about 38%, Oman registered a 13% decrease to 48%, and Qatar’s occupancy also declined 13% to 60%.
Average daily rates (ADR) showed resilience or slight growth in Kuwait, Oman, and Saudi Arabia despite occupancy declines. Kuwait’s ADR reached nearly US$199 from January through August 2026, a 3.2% increase year-on-year. Oman’s ADR increased by almost 1% to US$142, and Saudi Arabia’s ADR rose 0.6% to around US$199. Conversely, ADR declined in other markets: Qatar’s ADR dropped 4.5% to US$117, the UAE’s fell 7% to US$165, and Dubai’s ADR decreased nearly 9% to just below US$168.
Impact of Regional Tensions and Government Measures
Regional political tensions
beginning in March 2026 disrupted international air connectivity, causing reduced traveler confidence and a significant shock to hotel demand across the GCC. This disruption particularly affected countries with substantial reliance on international long-haul travel, such as the UAE and Dubai.
Government intervention in the UAE included a relief package exceeding US$680 million aimed at supporting the hospitality sector. Restoration of air connectivity remains critical for accelerating market recovery in this region.
Market Dynamics: Saudi Arabia vs. UAE
Saudi Arabia’s relatively stronger hotel market performance reflects robust domestic tourism, ongoing pilgrimage activity, and developments driven by its Vision 2030 economic plan. This creates a structural demand base
less vulnerable to international travel disruptions, with domestic demand cushioning the effect of weaker inbound arrivals.
In contrast, the UAE’s market, especially Dubai, is more exposed to fluctuations in international travel. Dubai’s occupancy is expected to range between 60% and 66% in the final quarter of 2026, with an ADR forecasted between US$163 and US$183. These figures remain below 2025 levels despite Dubai’s peak travel season and events schedule.
Oman showed initial strength early in 2026 before a downturn in the second quarter. Seasonal periods such as the Khareef and upcoming winter are expected to support demand in the latter
half of the year. The limited new supply in Oman this year is also expected to reduce competitive pressure.
Qatar’s visitor market is gradually normalizing, with forthcoming major events like the MotoGP and Formula 1 Grand Prix anticipated to improve occupancy and ADR metrics.
Outlook for GCC Hospitality Sector
The GCC hotel sector’s future recovery and growth hinge on regional stability, normalization of air travel, and the strength of returning visitor demand. Variability in recovery pace will depend on factors such as source-market composition, seasonality, event calendars, and supply changes within individual countries.
Cavendish Maxwell projects a 25% increase in hotel inventory across the GCC
by 2030, predominantly driven by Saudi Arabia’s expansion and continued development in the UAE. However, the timing and scale of any market upturn remain uncertain amid ongoing geopolitical influences and travel connectivity challenges.
