BUSINESS REPORTER
MUSCAT, DEC 28
Hotel revenues in Oman rose by more than 18% year-on-year between January and September 2025 to reach a new nine-month high of RO 193.4 million ($505 million), according to leading real estate advisory and property consultancy, Cavendish Maxwell.
In the same period, room revenues climbed by nearly 21%, occupancy rose by 13%, hotel guest numbers grew by 9% and employment in the hospitality sector increased by 5.3%, the company said.
By the end of September, Oman had 36,300 hotel rooms in operation, with another 1,000 set for completion in Q4 2025. With another 3,000 planned for the next two years, room inventory is set to reach 40,300 by the end of 2027, according to Cavendish Maxwell’s latest insight and analysis of Oman’s hospitality sector.
In addition, Oman’s Ministry of Heritage and Tourism is further boosting the sector with RO 100 million ($260 million) worth of usufruct agreements covering hotels, resorts and integrated developments, while ongoing marketing campaigns are strengthening Oman’s position as a year-round destination.
Oman’s 3-5 star hotels welcomed 1.7 million guests in the first nine months of year, compared to 1.5 million in the same period in 2024, with the Khareef Dhofar Season further boosting visitor numbers.
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”.
The research, which covers the first nine months of 2025, with a focus on 3-5 star hotels, also shows: Hotel occupancy rose to almost 53%, a year-on-year increase of over 13%; Average room rates reached RO 45.3 (US$117) — up 1.3% on the same period in 2024; Omani nationals accounted for the majority of guests, making up nearly 4 in every 10 travellers (38.1%). Europeans are second, followed by Asians and GCC visitors; and Oman’s airports handled 11.2 million passengers, with 9.8 million (87.4%) using Muscat International Airport.
Hotel occupancy rose 13.1% to reach an average of almost 53% between January and September, with the strong performance driven by several factors including a rise in demand for leisure travel and an improved summer season supported by the #WithinOman tourism initiative. The Khareef Dhofar Season, which falls from late June to early September, also boosted overall visitor numbers. April saw the highest occupancy, followed by January and August.
Average room rates in the first nine months of the year were RO 45.3 ($117), just 1.3% higher year-on-year. The slight increase demonstrates that hotels are focusing on driving occupancy and optimising inventory usage, rather than pursuing aggressive price increases to achieve revenue growth. Room rates were highest in April, followed by February and August.
Oman’s domestic market made up the biggest share of hotel guests between January and September, with Omani nationals accounting for nearly 678,000 (38.1%). Europeans took a share of almost 25% with 425,000 check-ins, with Asian travellers making up 1 in 7 guests (14.4%). Next were travellers from the GCC, other Arab countries, The Americas, Oceania and Africa.
Around 11.2 million people flew in and out of Oman’s airports in the first nine months of the year, a modest year-on-year increase of 0.7%. Despite reduced operations at Suhar Airport, total passenger volumes across the country’s airport network are expected to reach up to 14.9 million, compared to 14.5 million in 2024.
Oman Observer is now on the WhatsApp channel. Click here
