Hotel development across the Middle East reached a new peak at the end of Q4 2025, with 710 projects comprising 176,402 rooms in the pipeline, according to Lodging Econometrics (LE). This marks a 15% year-on-year rise in projects and a 13% increase in rooms.

Of the total, 332 projects (84,172 rooms) were under construction, reflecting annual growth of 10% in projects and 5% in rooms. Another 176 projects (54,060 rooms) are scheduled to break ground within the next 12 months — a record level — up 13% in projects and 27% in rooms compared to last year. Early-stage planning accounts for 202 projects with 38,170 rooms, representing year-on-year growth of 25% in projects and 18% in rooms.

Luxury and upscale segments continue to dominate expansion. The luxury category reached 207 projects (45,780 rooms), up 11% by projects and 6% by rooms. Upper upscale developments climbed to 168 projects (42,376 rooms), growing 16% and 14% respectively. Upscale hotels total 182 projects (53,155 rooms), while upper midscale properties stand at 61 projects (16,248 rooms), both segments posting double-digit annual gains.

Hotel renovations and brand conversions also hit record levels, with 81 projects totaling 19,772 rooms — up 37% in project count and 46% in room volume year-on-year.

At the country level, Saudi Arabia leads the region with a record 394 projects (106,521 rooms), reflecting growth of 25% in projects and 28% in rooms. Egypt follows with 140 projects (31,104 rooms), while the UAE reports 104 projects (25,459 rooms). Oman and Qatar recorded 28 projects (4,789 rooms) and 11 projects (2,170 rooms), respectively.

Among cities, Riyadh tops the list with 107 projects (20,936 rooms), followed by Jeddah with 63 projects (14,358 rooms). Cairo accounts for 53 projects (11,258 rooms), while Makkah has 35 projects (22,829 rooms). Muscat rounds out the top cities with 15 projects (2,479 rooms).

In 2025, the region opened 36 new hotels totaling 10,104 rooms. Looking ahead, 93 hotels (18,511 rooms) are expected to open in 2026, followed by 94 hotels (19,654 rooms) in 2027, according to LE forecasts.

Source: traveldailynews.com