Oman to Add 700 Hotel Rooms by End-2026 as Tourism Recovery Gains Focus

Oman is set to add 700 hotel rooms by the end of 2026, taking the country’s total hotel inventory to around 40,800 rooms, according to research from real estate advisory and hospitality consultancy Cavendish Maxwell.

The new rooms are coming as Oman’s hospitality sector moves into the second half of the year after a weaker first half. The country added 400 hotel rooms during the first six months, with all of them delivered in the first quarter.

The Khareef season in Salalah and the winter travel period could give tourism activity a lift in H2. Cavendish Maxwell said that “July to December typically accounts for a significant share of tourism activity”, contributing 52% of hotel revenue and guest volumes in 2025.

Oman hotel rooms and tourism demand

Oman’s 3-5 star hotels recorded 992,000 guests during H1 2026, down 13% from the same period last year. Airport passenger traffic also fell 9.3% to 6.3 million.

Guest numbers fell 43% year-on-year in April as regional travel disruptions affected international connectivity. The decline narrowed to 2.6% in May as travel conditions improved, while Eid Al Adha also brought more visitors.

Omani nationals remained the largest source market. Around 396,000 Omani guests stayed at hotels during H1, accounting for almost 40% of total visitors.

European visitors followed with 247,000 guests. However, their numbers fell 31% year-on-year. Asian visitors reached 163,000, showing a slight increase of 0.6%.

Hotel revenue and occupancy

Oman’s 3-5 star hotels generated OMR124.2 million (US$322.7 million) in revenue during H1. This was about 12% lower than a year earlier.

Revenue was higher in January and February. It then started to decline from March. April recorded the biggest drop, with hotel revenue falling 64.5% year-on-year.

Room revenue fell 11% to OMR74 million. Other revenue was down 13% to OMR50.2 million. Average room rates were also weaker in Q2 after a stronger start to the year.

Hotel occupancy averaged 46.3% during H1. It was around 70% in January and February before falling from March as international travel activity weakened.

700 hotel rooms and future hotel supply

After 400 rooms were delivered during H1, another 700 rooms are expected to enter the market by December. This would take Oman’s total hotel inventory to around 40,800 rooms.

A further 1,500 rooms are planned for 2027 and 1,600 in 2028. If the projects stay on schedule, total hotel inventory could reach around 43,900 rooms by the end of 2028.

Cavendish Maxwell said some projects have been rescheduled to 2027. This brings the expected 2026 inventory down from the earlier projection of 41,400 rooms.

The consultancy said visitor recovery will be important as the new rooms enter the market. It noted that “the Khareef season and subsequent winter period should provide seasonal support to tourism activity” following the disruption seen in H1.

Tourism promotions and partnerships with airlines and travel trade partners are also expected to support demand during the second half of the year.