Oman is set to deliver 700 new hotel rooms between now and the end of 2026, bringing total inventory to 40,800 keys, according to new research from real estate advisory and hospitality consultancy Cavendish Maxwell.
The addition follows a slower first half, in which Oman opened just 400 new rooms — all delivered in the first quarter — amid reduced hospitality sector activity as regional travel disruptions weighed on international connectivity and tourism trade. The upcoming rooms will arrive as the Sultanate heads into its Khareef and winter travel seasons, which Cavendish Maxwell identifies as the key drivers of H2 hospitality performance.
The scale of H1’s disruption shows up clearly in the numbers. Oman welcomed 992,000 guests at 3-5 star hotels in the first half, down 13% on the same period last year, while airport passenger traffic declined 9.3% to 6.3mn. Khalil Al Zadjali, head of Oman at Cavendish Maxwell, said the sector entered the second half in a challenging environment, though the July-to-December period typically accounts for a significant share of annual tourism activity, contributing 52% of hotel revenue and guest volumes last year. He said the recent Khareef season in Salalah, combined with the approaching winter months, would offer a clearer read on how well seasonal demand can support the market following the disruption, which hit hardest in the second quarter.
Revenue and rate figures reflect the same pattern. Oman’s 3-5 star hotels generated OMR124.2mn ($322.7mn) in total revenue during H1, down around 12% on H1 2025, with growth of nearly 27% in January giving way to a sharp 64.5% contraction in April before stabilising somewhat in May and June. Average room rates followed a similar arc, climbing more than 20% year-on-year in February before falling around 43% in April and partially recovering in May as Eid Al Adha boosted demand. Occupancy averaged 46.3% across H1, more than half down on the same period last year, with the steepest declines concentrated in the second quarter as regional tensions affected international travel.
Omani nationals represented the largest source market in H1, with 396,000 guests accounting for almost 40% of all visitors, up 3.1% year-on-year. Europeans followed with 247,000 visitors, though that figure was down 31% on last year, while Asian visitor numbers held roughly flat at 163,000. Most other source markets posted declines, including the GCC (down 17%), other Arab countries (down 15%), the Americas (down 22%) and Oceania (down 61%).
On supply, Al Zadjali said total room inventory would reach 40,800 by the end of 2026, slightly below the 41,400 previously anticipated after some projects were rescheduled into next year. A further 1,500 rooms are planned for 2027 and 1,600 for 2028, which would bring Oman’s total hotel room inventory to 43,900 by the end of 2028. He said the near-term pipeline should help manage supply growth, but the pace of visitor recovery would determine how well the market absorbs the larger wave of rooms arriving from 2027 onward.