Gulf hotel pipeline swells with nearly 126,000 new rooms due by 2030

Dubai: Nearly 126,000 new hotel rooms are set to open across the Gulf by 2030, lifting total supply in the six GCC countries to about 616,000 rooms, according to new research from Cavendish Maxwell.

The region currently has close to 490,000 hotel rooms in operation, with the UAE accounting for around 43% of the total. The Emirates had 212,135 rooms as of August 2026, including around 151,380 in Dubai.

Saudi Arabia has the largest development pipeline, with almost 94,500 rooms planned by 2030, taking its total inventory to nearly 275,300.

The UAE ranks second, with more than 23,000 rooms in the pipeline, including 11,180 in Dubai.

The figures come as hotels across the region work through a weaker year for occupancy following disruption to international travel, even while room rates have proved more resilient.

Occupancy falls across the Gulf

Hotel occupancy declined across all GCC markets during the first eight months of 2026, according to Cavendish Maxwell’s research released at Future Hospitality Summit World.

Saudi Arabia recorded occupancy of 59%, with the smallest percentage decline among GCC countries at just under 3%.

The UAE also averaged 59%, although occupancy was down almost a quarter, while Dubai recorded a 27% decline.

Bahrain posted the largest fall, with occupancy down 31% to just under 37%. Kuwait averaged about 38% occupancy, down 18%, while Qatar stood at 60%, down 13%, and Oman at 48%, also down 13%.

Saudi Arabia has held up better than other markets because of domestic tourism and pilgrimage demand, according to Shah.

Dubai looks to winter season

Dubai remains among the GCC markets most exposed to changes in international travel because of its reliance on long-haul visitors.

Cavendish Maxwell forecasts Dubai’s average occupancy at between 60% and 66%, supported by the peak travel season and events calendar, with average daily rates between $163 and $183. Both are expected to remain below 2025 levels.

Room rates across the broader Gulf held up better than occupancy during the first eight months of the year as hotel operators focused on maintaining prices despite weaker demand.

The UAE’s average daily rate fell 7% to $165, while Dubai’s was just under $168, down nearly 9%.

Kuwait recorded an ADR of just below $199, up 3.2% year on year, while Oman rose nearly 1% to $142. Saudi Arabia’s ADR increased 0.6% to around $199, while Qatar fell 4.5% to $117.

Rates hold despite weaker demand

The difference between occupancy and room rates shows how operators have responded to fewer guests without cutting prices to the same extent.

Shah said upcoming travel periods and major events could support demand in several Gulf markets during the rest of the year.

“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. In Qatar, the international visitor market is gradually normalising and planned upcoming events like the Qatar MotoGP and Formula 1 Grand Prix expected to further support occupancy and ADR.”

The pace of recovery will differ across Gulf markets depending on regional conditions, air travel, visitor demand and the amount of new hotel supply entering each destination.

“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.”