Gulf hotel operators are on course to add roughly 126,000 new rooms to their combined inventory by 2030, a 25 per cent increase that would push the region's total room count to 616,000, according to a new report from consultancy Cavendish Maxwell presented at the Future Hospitality Summit World.
Saudi Arabia accounts for the largest share of the pipeline, with about 94,500 rooms under development, taking its total hotel capacity to roughly 275,300 rooms by the end of the decade. The UAE ranks as the second-largest market for new supply, with more than 23,000 rooms currently in the pipeline.
As of August 2026, the UAE's existing hotel stock stood at 212,135 rooms, of which 151,380 are in Dubai. The country still commands the largest share of GCC hospitality capacity overall, holding 43 per cent of the region's roughly 490,000 existing rooms.
Despite the expansion, occupancy rates softened across much of the region between January and August 2026. Occupancy in the UAE and Qatar hovered around 59 to 60 per cent, down 25 per cent and 13 per cent respectively compared with the same period last year, while Bahrain saw the steepest decline, falling to 37 per cent, a drop of 31 per cent. Average daily rates also eased in some markets: Dubai's stood at $168, down 9 per cent year-on-year, even as Kuwait and Saudi Arabia posted modest rate gains near $199.
Industry analysts say the figures point to a market that is still expanding aggressively on the supply side even as demand growth cools, suggesting operators across the Gulf may face intensifying competition for occupancy and rate growth in the near term as new inventory comes online faster than visitor numbers.