28/09/2026 06:58 AST
The Sultanate of Oman is set to deliver 700 new hotel rooms between now and the end of 2026, taking total inventory to 40,800 keys, according to leading real estate advisory and hospitality property consultancy, Cavendish Maxwell.
Oman opened 400 new rooms in H1 2026 - all in Q1 - amid reduced hospitality sector activity as regional travel disruptions affected international connectivity and tourism trade. After delivering it, the sultanate is set to bring another 700 into the market by December.
A further 1,500 rooms are in the pipeline for handover next year followed by another 1,600 in 2028, thus taking the sultanate's room inventory to 43,900. stated the report.
Khalil Al Zadjali, Head of Oman at Cavendish Maxwell, said with this, the total room supply will reach 40,800 by the end of 2026 - less than the 41,400 previously anticipated because some projects have been rescheduled to next year.
"The upcoming, phased pipeline should help manage near-term supply growth, but the pace of visitor recovery will be key to the absorption of new capacity. With a limited number of keys coming in the near future, supply growth is unlikely to be a major constraint in the short term. However, the larger pipeline from next year and into 2028 will be more dependent on the recovery in visitor demand," he added.
According to the report, the Khareef and winter travel seasons will be key drivers in the country's H2 hospitality performance, the company said.
Oman welcomed 992,000 guests at 3-5 star hotels in H1, down 13% on the same period last year. Airport passenger traffic declined 9.3% to 6.3 million, according to Cavendish Maxwell's latest research, released in the run up to the 2026 edition of Future Hospitality Summit World.
Al Zadjali said Oman's hospitality sector entered H2 in a challenging environment. While the outlook remains sensitive to prevailing travel conditions, the July to December period typically accounts for a significant share of tourism activity, contributing 52% in hotel revenue and guest volumes last year.
Oman's 3-5 star hotels generated RO124.2 million ($322.7 million) in total revenue in H1, down 12% against last year more than 8% year-on-year to OMR43.7 (US$113.6) as Eid Al Adha boosted travel demand.
Occupancy rates across the sultanate averaged 46.3% in H1, down more than half compared to the same period last year. Again, performance was impressive in January and February, with occupancy around 70%, before dropping from March.
The decline was most acute in Q2 as regional tensions weighed in on international travel and, while domestic visitors provided some support, it was not enough to compensate for the overall decline in visitors.
Trade Arabia
Please wait...