Oman’s Hospitality Boom: Hotel Revenues Skyrocket by 18 Per Cent and Room Inventory Set to Surpass 40,000 by 2027

Published on December 28, 2025

By: Tuhin Sarkar

Oman’s hospitality industry is soaring to new heights, marking an extraordinary period of growth. According to the latest research by Cavendish Maxwell, hotel revenues in Oman reached an impressive OMR193.4 million (US$505 million) between January and September 2025, reflecting a staggering 18% year-on-year increase. This remarkable achievement is a direct result of the government’s focus on expanding the tourism sector, supported by a combination of strategic investments, robust domestic and international demand, and an evolving landscape that caters to global visitors.

The hospitality sector is not just about revenue growth; it’s about the overall success and diversification that Oman is witnessing. The number of hotel guests has increased by 9%, with Oman’s 3-5 star hotels seeing substantial improvements in occupancy and room revenues. This growth is also reflected in the employment rate in the hospitality industry, which increased by 5.3%, creating more jobs for Omanis as the sector continues to expand.

Strong Performance in the First Nine Months of 2025

The first three quarters of 2025 proved to be a highly profitable period for Oman’s hospitality industry. Room revenues surged by 21%, while occupancy rose by 13%, a clear indication that Oman’s hospitality sector is catering effectively to the growing demand for travel. According to the research, Omani hotels are not only attracting more international tourists but also receiving a significant boost from domestic tourism. This has been driven by an increase in local travel, supported by marketing initiatives such as the #WithinOman campaign, which has been highly effective in boosting regional tourism.

By the end of September 2025, Oman had 36,300 hotel rooms in operation, with an additional 1,000 rooms set for completion in the last quarter of the year. But it doesn’t stop there – over the next two years, another 3,000 rooms will be added, bringing the total to 40,300 rooms by 2027. This expansion is crucial to meet the growing demand from tourists, both local and international, as Oman continues to strengthen its position as a leading destination in the Middle East.

Rising Occupancy Levels and Strategic Room Rate Adjustments

Oman’s hotel occupancy rates have seen a steady increase, with a 13% rise leading to a 53% average occupancy rate between January and September 2025. This strong performance can be attributed to the growth in leisure travel, especially during the Khareef season from late June to September. The Khareef season, a key driver of Oman’s tourism, continues to draw thousands of visitors to Salalah, boosting both occupancy rates and overall visitor numbers.

Interestingly, while average room rates saw a modest increase of 1.3%, rising to OMR45.3 (US$117), this indicates that hotels are more focused on driving occupancy rather than aggressively raising prices. April, February, and August saw the highest room rates, which coincided with peak travel seasons.

Europeans Lead the Charge, but Domestic Tourism Remains Strong

The research reveals that Omani nationals continue to be the largest group of hotel guests, accounting for 38.1% of all check-ins between January and September 2025. This is a reflection of Oman’s growing local tourism market, bolstered by marketing campaigns and attractive staycations. Following Omani nationals, Europeans make up the second-largest group, with 425,000 European guests, highlighting the region’s appeal as a destination for international visitors.

The figures indicate that Oman is making a significant impact on the European tourism market, which is essential for continued growth in the country’s hospitality sector. Oman’s airports also contribute to this international appeal, handling 11.2 million passengers during the first nine months of 2025, with 87.4% of these passengers passing through Muscat International Airport, the country’s main gateway for international flights.

Government Initiatives and Investments Fuel Hospitality Growth

Oman’s commitment to supporting its hospitality sector through substantial investments and strategic initiatives is clear. The government has already committed OMR100 million (US$260 million) through usufruct agreements aimed at developing hotels, resorts, and integrated developments. This is in addition to the tourism marketing campaigns that promote Oman as a year-round destination, further attracting both leisure and business travellers.

The continued development of Oman’s airports also plays a crucial role in this growth. With Muscat International Airport serving as the country’s main airport, and Salalah International Airport acting as a vital secondary hub, Oman is well-positioned to cater to growing international passenger traffic. The Khareef season continues to be a significant contributor to increased passenger numbers, especially at Salalah Airport, which saw 21% of its total annual passenger volume during this peak season.

Oman’s Hospitality Future Looks Bright

With the combination of a rising hotel room inventory, strong performance metrics, and continuous investment by the Omani government, the future of Oman’s hospitality industry looks incredibly promising. The planned increase in room capacity to 40,300 rooms by 2027 is expected to keep pace with the growing demand, ensuring that Oman remains a top destination for global travellers.

Khalil Al Zadjali, Head of Oman at Cavendish Maxwell, optimistically notes that Oman’s hospitality sector will continue to experience growth, resilience, and diversification in 2026 and beyond. This growth is not only driven by international travellers but also by a significant shift in domestic tourism, which has been supported by government initiatives.

Conclusion: The Unstoppable Growth of Oman’s Hospitality Sector

Oman’s hospitality sector has witnessed a remarkable transformation, with hotel revenues rising sharply and occupancy rates reaching new highs. The expansion of hotel room inventory, along with government-led investments in tourism infrastructure, has paved the way for an exciting future. By 2027, Oman will be ready to welcome more visitors than ever before, further cementing its place as a premier destination in the Middle East.

As Oman continues to rise as a global tourism hotspot, its hospitality sector is set to remain strong, offering visitors world-class accommodations, unparalleled natural beauty, and a thriving cultural scene. With a strategic focus on both international and domestic tourism, Oman’s hotel industry is poised for even more success in the years to come.