Oman hotel revenues surge 18% to $505m as occupancy, guests and room supply rise

The Oman hotel sector delivered a strong performance in the first nine months of 2025, with revenues climbing by more than 18 per cent year-on-year to reach OR193.4m ($505m), according to Cavendish Maxwell.

The gains reflect higher occupancy, rising guest numbers and expanding room supply across the Sultanate.

Between January and September, room revenues increased by nearly 21 per cent, occupancy rose by 13 per cent, hotel guest numbers grew by 9 per cent and employment in the hospitality sector expanded by 5.3 per cent, the firm said.

Oman tourism growth

By the end of September, Oman had 36,300 hotel rooms in operation, with a further 1,000 rooms due for completion in Q4 2025.

With another 3,000 rooms planned over the next two years, total inventory is set to reach 40,300 rooms by the end of 2027, according to Cavendish Maxwell’s latest insight and analysis of Oman’s hospitality sector.

The expansion is supported by public-sector initiatives. Oman’s Ministry of Heritage and Tourism is advancing OR100m ($260m) worth of usufruct agreements covering hotels, resorts and integrated developments, while ongoing marketing campaigns continue to position Oman as a year-round destination.

Oman’s 3–5 star hotels welcomed 1.7m guests in the first nine months of the year, up from 1.5m in the same period of 2024, with the Khareef season further lifting visitor numbers.

Hospitality sector strength

Khalil Al Zadjali, Head of Oman at Cavendish Maxwell, said: “Oman’s hospitality industry performed strongly to the end of Q3 2025, with robust demand from domestic and international travellers. Government investment, population growth, targeted marketing initiatives and evolving travel patterns are all playing key roles in the success of the sector, which is set to enjoy further growth, resilience and diversity in 2026 and beyond.”

Hotel occupancy rose 13.1 per cent to an average of almost 53 per cent between January and September. The increase was driven by stronger leisure demand and an improved summer season supported by the #WithinOman tourism initiative. The Khareef season, from late June to early September, also boosted overall visitor numbers. April recorded the highest occupancy, followed by January and August.

Average room rates reached OR45.3 ($117) in the first nine months, up 1.3 per cent year-on-year. The modest rise indicates a focus on lifting occupancy and optimising inventory rather than aggressive price increases. Rates were highest in April, followed by February and August.

Source markets

Domestic demand dominated. Omani nationals accounted for nearly 678,000 guests, or 38.1 per cent of the total. Europeans represented almost 25 per cent with 425,000 check-ins, while Asian travellers made up 14.4 per cent. Visitors from the GCC, other Arab countries, The Americas, Oceania and Africa followed.

Oman’s airports handled around 11.2m passengers in the first nine months of 2025, a year-on-year increase of 0.7 per cent. Passenger volumes are expected to reach up to 14.9 million for the full year, compared with 14.5 million in 2024, despite reduced operations at Suhar International Airport.

Traffic remained concentrated at Muscat International Airport, which processed 9.8m travellers, or 87.4 per cent of the total.

Salalah International Airport served as the key secondary hub with 1.4m passengers, or 12 per cent, with the Khareef season accounting for more than a fifth (21 per cent) of its total traffic.