Oman to add 700 hotel rooms - Utah Homes Real Estate

Oman to add 700 hotel rooms - hotel rooms — The upcoming Khareef and winter seasons are expected to play a key role in shaping the country’s hospitality performance in the second half of the year, according to the firm.

By the close of 2026, the Sultanate of Oman plans to introduce 700 additional hotel rooms, expanding its total capacity to 40,800 rooms, as reported by Cavendish Maxwell, a prominent consultancy specializing in real estate and hospitality.

During the first half of 2026, Oman added 400 new rooms, all within the first quarter, amid broader slowdowns in the tourism industry caused by connectivity issues and regional travel restrictions.

The upcoming Khareef and winter seasons are expected to play a key role in shaping the country’s hospitality performance in the second half of the year, according to the firm.

Hospitality Sector Performance

In the first half of 2026, 3-5 star hotels in Oman hosted 992,000 guests, marking a 13% decline compared to the same period the previous year.

Airport passenger numbers also fell by 9.3%, totaling 6.3 million, according to Cavendish Maxwell’s analysis.

Khalil al Zadjali, the company’s Oman director, commented: “The hospitality industry in Oman has faced challenges entering the second half of the year.

While external factors continue to influence travel trends, the period from July to December usually drives a substantial portion of tourism, contributing 52% to both guest numbers and hotel earnings last year.

Revenues and Room Rates

Hotels in Oman’s 3-5 star category earned RO 124.2 million (US$322.7 million) in the first half of 2026, reflecting an approximate 12% drop from the same period in 2025.

Early-year revenue growth was strong, with increases of nearly 27% in January and around 9% in February, before tapering off from March onward.

Average room pricing mirrored this trend, with initial strength followed by a decline in the second quarter.

Overall, occupancy rates across Oman averaged 46.3% in the first half, more than halving compared to the same period last year.

Guest Volumes and Source Markets

Domestic travelers accounted for the largest share of visitors in the first half, with 396,000 Omani guests, representing nearly 40% of total arrivals, a 3.1% increase from the prior year.

Visitors from Europe made up the second-largest group at 25%, though their numbers fell by 31% year-over-year.

Asian travelers contributed 16% (163,000 guests), showing a modest 0.6% rise compared to 2025.

Planned expansions continue with 1,500 rooms scheduled for 2027 and 1,600 for 2028, and Oman is set to deliver 700 new hotel rooms between now and the end of 2026, taking total inventory to 40,800 keys. A further 1,500 are scheduled in 2027 and 1,600 in 2028, taking total Oman room inventory to 43,900 by the end of 2028.