Oman is set to open 9,600 new hotel rooms between now and 2030, with 2,600 scheduled for completion by the end of 2025, says leading real estate advisory group and property consultant, Cavendish Maxwell. The upcoming keys will boost Oman's existing inventory of 36,000 rooms by more than 25%, the company said.

Cavendish Maxwell's latest Oman Hospitality Market Performance insight and analysis reveals that 3-5 star hotel revenues rose to OMR141.2 mn ($367 mn) in the first half of 2025, an increase of 18.2% on H1 last year. Room revenues contributed OMR83.7 mn ($217.5 mn) - up nearly 22%.

The strong hotel performance has led to 4.8% growth in hospitality sector employment in the country, with 10,800 people now working in the industry. 3-5 star hotels welcomed 1.1 million guests between January and June, up 9.2% from 2024.

Khalil Al Zadjali, Head of Oman at Cavendish Maxwell, said, "Oman's hospitality sector is entering a new era, driven by population growth, evolving travel patterns and strategic Government investment. H1 2025 recorded impressive increases in visitors, hotel bookings, revenues, room rates and employment, and we expect this trend to continue in the second half of the year, and beyond.

"Oman's population grew by 4.5% last year and 5% in 2023, with similar increases predicted through the decade. Domestic travel has risen in line with population growth, with Omanis taking longer trips and spending more per visit. While Gulf visitors still account for more than 25% of arrivals into the country, the number of visitors from further afield, including Europe, India and China, is increasing. With tourism expected to contribute 5% to GDP by 2030 - and 10% by 2040 - the sector is set to overtake transport and logistics to become the second most important industry in Oman after hydrocarbons.

"To keep pace, Oman needs to continue to rejuvenate the hotel sector, build new hotels and resorts, and diversify tourism beyond Muscat, creating significant opportunities for investment, development and construction across the country," added Al Zadjali.

Cavendish Maxwell's research also shows that in H1 2025:

* Oman hotel occupancy reached almost 55% - up more than 14% on H1 2024

* The average room rate was OMR47.7 (US$124)

* Domestic travellers accounted for over a third of hotel guests, followed Europeans, Asians and GCC visitors

* Muscat Airport handled 90% of travellers to Oman. Salalah handled 9.5%.

Occupancy up

Hotel occupancy climbed to an average of nearly 55% in H1 - up 14% on last year - with January and April commanding the highest levels of 65%. The rise was driven by an increase in domestic and international visitors, reinforced by Government initiatives to position Oman as a year-round, global destination.

Modest rise in room rates

Average room rates in H1 stood at OMR47.7 - a slight increase on the same period in 2024. This modest growth suggests that, although occupancy and guest numbers grew, pricing power remained stable, with hotels benefiting from higher volumes rather than significant rate increases.

Hotel guest source markets

Omani nationals represented the biggest share of hotel guests in H1, accounting for nearly 370,000 (33.6%) of all check-ins at 3-5 star hotels. Europeans were in second place, with more than 344,000 guests (31.1%) followed by Asians, who accounted for 157,000 (14.3%). Next were travellers from the GCC (7.3%), other Arab countries (4.2%), The Americas (3.4%) Oceania (2.2%) and Africa (0.7%). The largest source market growth was among travellers from Oceania.