GCC Hotel Supply Set to Reach 616,000 Rooms by 2030 as 126,000 New Keys Planned
The GCC hospitality sector is set to add nearly 126,000 hotel rooms by 2030.
That would bring the region’s total hotel inventory to around 616,000 rooms, up by about 25%, according to Cavendish Maxwell research.
The six GCC countries currently have around 490,000 operating hotel rooms. The UAE accounts for about 43% of the total.
As of August 2026, the UAE had 212,135 hotel rooms, with around 151,380 of them in Dubai. The country also has more than 23,000 rooms in the pipeline, including 11,180 in Dubai.
GCC Hotel Supply Expansion Led by Saudi Arabia and UAE
Saudi Arabia is expected to add the most hotel rooms, with almost 94,500 currently in the pipeline. This could bring its total hotel supply to nearly 275,300 rooms by 2030.
The research also highlights changing conditions across the GCC hospitality market during the first eight months of 2026. While the year began with strong momentum, regional tensions from March affected international travel and contributed to weaker occupancy levels across the six markets.
Occupancy declined year-on-year in every GCC country between January and August. Saudi Arabia recorded an average occupancy of 59%, with a decline of just under 3%. Bahrain had the lowest average occupancy at just under 37% and recorded the sharpest decline of 31%.
The UAE also averaged 59% occupancy, while Dubai experienced a 27% decline. Kuwait recorded approximately 38%, while Oman and Qatar stood at 48% and 60%, respectively.
Vidhi Shah MRICS, Director and Head of Commercial Valuation at Cavendish Maxwell, said: “The GCC hospitality market entered 2026 with considerable momentum, but regional tension from March triggered a pronounced demand shock, disrupting international air connectivity, dampening traveller confidence and creating challenging trading conditions.”
She added: “Saudi Arabia’s relatively strong performance has been supported by robust domestic tourism, pilgrimage activity and continued development under Vision 2030. Religious tourism provides a structural demand base that is less exposed to international travel disruption, while strong domestic activity helps cushion the impact of softer inbound arrivals. This means that KSA is comparatively better positioned for Q4.”
Despite weaker occupancy, room rates remained relatively stable across the region. Kuwait, Oman and Saudi Arabia recorded increases in average daily rates during the January-August period. Kuwait's ADR was just below US$199, up 3.2% year-on-year, while Oman reached US$142 and Saudi Arabia stood at around US$199.
Qatar's ADR declined 4.5% to US$117, while the UAE recorded a 7% decrease to US$165. Dubai's ADR was just under US$168, representing a decline of nearly 9%.
Looking ahead to the final months of 2026, seasonal tourism and major events could provide additional support to hotel demand. Shah said: “Oman entered the year as one of the GCC’s stronger performers before a sharp Q2 reversal. The recent Khareef season and upcoming winter period are anchors for H2 demand, while limited new supply this year should limit additional competitive pressure.”
On Qatar, she added: “In Qatar, the international visitor market is gradually normalising and planned upcoming events like the Qatar MotoGP and Formula 1 Grand Prix are expected to further support occupancy and ADR.”
Shah concluded: “Ultimately, the pace of improvement across the GCC will depend on regional conditions, back-to-normal air travel and the strength of returning visitor demand. The timing and extent of any uptick remain uncertain, with individual markets continuing to be influenced by their source-market mix, seasonality, events calendars and supply dynamics.”
Source: Rebecomms
