Countries across the Gulf Cooperation Council (GCC) are expected to add nearly 126,000 hotel rooms by 2030, increasing regional supply by 25% to about 616,000 rooms, according to real estate advisory and hospitality consultancy Cavendish Maxwell.

The six GCC markets, the UAE, Saudi Arabia, Oman, Bahrain, Kuwait and Qatar,  currently have almost 490,000 hotel rooms in operation, with around 43% located in the UAE.

 As of August 2026, the Emirates had 212,135 hotel keys, including approximately 151,380 in Dubai.

Saudi Arabia accounts for the largest share of the planned expansion, with almost 94,500 rooms in the pipeline, taking its projected 2030 inventory to nearly 275,300.

The UAE follows with more than 23,000 rooms under development, including 11,180 in Dubai.

Cavendish Maxwell released the findings at the 2026 Future Hospitality Summit World, alongside an assessment of GCC hotel performance during the first eight months of 2026.

The research showed that regional tensions disrupted a strong start to the year, affecting international travel and reducing demand.

Hotel occupancy declined year-on-year across all GCC markets between January and August, although the scale of the declines varied.

Saudi Arabia recorded average occupancy of 59%, with a decline of just under 3%.

Bahrain experienced the sharpest fall, with occupancy averaging just under 37%, down 31%.

Occupancy in the UAE averaged 59%, a decline of almost a quarter, while Dubai recorded a 27% drop.

 Kuwait averaged about 38%, down 18%, while Oman stood at 48%, down 13%. Qatar recorded 60% occupancy, also down 13%.

Vidhi Shah MRICS, Director, 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.

“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.

“Meanwhile, the UAE, led by Dubai, is among the markets most affected by the disruption, given its exposure to long-haul international travel. The restoration of air connectivity remains a primary driver for recovery, supported by the government’s $680 million + relief package and intensified destination marketing. Dubai’s average occupancy, boosted by the peak travel season and events calendar, is forecast at 60% to 66%, with an ADR between $163 and $183 – both below 2025 levels,” she added.

Despite weaker occupancy, average daily rates (ADR) remained relatively resilient as hotels prioritised pricing over volume.

 Kuwait recorded ADR of just below $199, up 3.2% year-on-year, while Oman rose nearly 1% to $142 and Saudi Arabia increased 0.6% to around $199.

ADR declined 4.5% in Qatar to $117 and 7% in the UAE to $165.

Dubai recorded ADR of just under $168, down nearly 9%.

Shah added: “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.

“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.” -TradeArabia News Service