Oman's hotel scene is quietly expanding even as it digs out from a rough first half of 2026. According to consultancy Cavendish Maxwell, the Sultanate will have around 700 new hotel rooms open by December, lifting national inventory to about 40,800 keys — with bigger waves of 1,500 and 1,600 rooms scheduled for 2027 and 2028, bringing the total to nearly 43,900 by end of 2028.
The new rooms land after a challenging six months. Regional travel disruptions hit Gulf air connectivity hard, and the numbers show it: hotel guest volumes at 3-5 star properties fell 13% to 992,000, airport passenger traffic dropped 9.3% to 6.3 million, and occupancy averaged just 46.3% — less than half the level of a year earlier. Total hotel revenue slipped around 12% to OMR124.2 million (about US$323 million), with April the worst month by far, when revenues collapsed 64.5% year-on-year.
It wasn't all bad news. January and February were strong — occupancy sat near 70% and room rates were up almost 20% — and things began to normalise by May, helped by Eid Al Adha travel. Domestically, Omanis themselves are carrying the market: they accounted for nearly 40% of all hotel guests in the half, while European visitor numbers fell 31%.
For travellers, the second half of the year matters more than the first. July to December normally generates 52% of Oman's annual hotel revenue and guest volumes, driven by the Khareef monsoon season that turns Salalah and Dhofar green each summer, plus the popular winter sun months. The H2 supply increase is modest, and the weaker year means rates may be more negotiable than usual — good timing for anyone eyeing Muscat's hotels or a Salalah road trip. With new keys coming online but visitor demand still finding its feet, the balance of power in 2026-27 leans toward the traveller.
The takeaway: Oman is investing in capacity for a recovery it expects, and if regional conditions stay stable, the winter season should see improving flight links, fresh hotel stock and a market working hard to win visitors back through international promotions and airline partnerships.
