Muscat – 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. 

The sultanate saw the opening of 400 new rooms in H1 2026 – all in Q1 – amid reduced hospitality sector activity as regional travel disruptions affected international connectivity and tourism trade.

A further 1,500 are scheduled in 2027 and 1,600 in 2028, taking total Oman room inventory to 43,900 by end of 2028. 

Khalil Al Zadjali, Head of Oman at Cavendish Maxwell, said, “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.”

The khareef and winter travel seasons will be key drivers in the country’s H2 hospitality performance this year, 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 6.3mn, 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. 

“The recent Dhofar khareef season coupled with the upcoming winter months will indicate how effectively seasonal demand supports the wider market following the H1 disruption, which was most pronounced in the second quarter. Government and tourism sector initiatives – such as international promotions and partnerships with airlines and travel trade partners – should also help strengthen demand.”

Revenues and room rates

Oman’s 3-5 star hotels generated RO124.2mn in total revenue in H1, down around 12% against H1 2025. Revenue growth was strong at the beginning of the year, increasing nearly 27% year-on-year in January and almost 9% in February, before declining from March. Following the sharpest contraction in April, when revenues fell 64.5% compared to the previous April, the pace of decline moderated in May and June, at around 28% and 15.5% respectively. 

Occupancy rates across Oman 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.