Oman’s hotel sector posted its strongest annual revenue performance on record in 2025, with income from three- to five-star hotels rising to OMR297.3 million, or about US$772 million, according to Cavendish Maxwell and figures attributed to Omani authorities. The total marked a 22.2 per cent increase from 2024, as higher occupancy, firmer room rates and broader visitor demand lifted the market beyond a simple post-pandemic rebound.
Oman hospitality revenues hit fresh highs as stronger winter trading, improving air connectivity and a more varied guest mix helped hotels convert visitor growth into higher earnings. Occupancy across the three- to five-star segment averaged 56.7 per cent in 2025, up from 49.9 per cent a year earlier, while average room rates rose 4.7 per cent to OMR48.6. Room revenue reached OMR179.1 million, with other revenue streams contributing OMR118.2 million, underlining how operators benefited not only from fuller rooms but also from spending on food, events and related services.
The figures point to a market that is gaining depth rather than relying on one-off demand spikes. Cavendish Maxwell said guest numbers in Oman’s three- to five-star hotels rose 10.8 per cent to about 2.4 million in 2025. Omani nationals remained the largest single customer group, accounting for 36.1 per cent of stays, while European travellers ranked second with 27.7 per cent and posted a sharper rate of growth than the domestic segment. Asian travellers made up 14.5 per cent of the total, and GCC visitors accounted for 9 per cent, reflecting a blend of domestic, regional and longer-haul demand.
Broader tourism indicators suggest the hotel numbers are part of a wider expansion in Oman’s visitor economy. Oman Observer, citing the Ministry of Heritage and Tourism, reported that total hotel guests across categories reached 4.6 million in 2025, up 4.6 per cent, while domestic tourism remained a major support with 13.6 million local visits recorded in 2024. The same report said investment in integrated tourism complexes had exceeded OMR11.5 billion, highlighting the scale of capital being committed to accommodation, leisure and destination infrastructure.
Air traffic also gave the sector a stronger base. Oman’s airports handled 14.9 million passengers in 2025, up 2.8 per cent from 2024, with Muscat International Airport carrying 13.2 million passengers and Salalah International Airport logging 1.7 million. The Khareef season in Salalah remained an important seasonal driver, while winter demand across the country continued to support pricing power in the hotel market. November was the best month for occupancy in the three- to five-star segment at 73.8 per cent, and December delivered the highest average room rate at OMR61.4.
That pattern matters because it shows Oman is not competing on price alone. Higher occupancy paired with higher average room rates usually signals a healthier market than volume growth by itself. Officials and hotel executives quoted by Omani media have pointed to gains from European, Russian, Chinese and regional travellers, as well as stronger business-linked demand in locations such as Duqm. At The Chedi Muscat, occupancy was said to have exceeded 85 per cent, while operators in Musandam and Salalah reported firmer bookings, longer stays and stronger package demand during peak periods.
Supply, however, is rising as well, and that will test whether demand can keep pace. Cavendish Maxwell said Oman’s hotel room stock closed 2025 at roughly 36,800 rooms, with around 900 rooms added during the year. It forecast about 2,400 more rooms for delivery in 2026 and another 900 in 2027, though it added that actual completions could come in below headline pipeline figures, as happened in 2025. Separately, Oman Observer reported 38,390 rooms across hotel establishments in 2025, a wider count that reflects a broader accommodation base than the three- to five-star segment alone.
The wider economic backdrop remains supportive. Muscat Daily, citing World Travel & Tourism Council data, reported in June 2025 that Oman’s travel and tourism sector was on course to contribute about OMR3.5 billion to national GDP in 2025, up from around OMR3.3 billion in 2024, with domestic travellers accounting for 52 per cent of total tourism spending and international visitors 48 per cent. The UAE was identified as the largest source market for inbound visitors, followed by India, the UK, Germany and Bahrain. That balance between domestic and foreign demand helps explain why Oman’s hotels have been able to lift revenues even as geopolitical risk remains a watchpoint across the wider region.
Oman hospitality revenues hit fresh highs as stronger winter trading, improving air connectivity and a more varied guest mix helped hotels convert visitor growth into higher earnings. Occupancy across the three- to five-star segment averaged 56.7 per cent in 2025, up from 49.9 per cent a year earlier, while average room rates rose 4.7 per cent to OMR48.6. Room revenue reached OMR179.1 million, with other revenue streams contributing OMR118.2 million, underlining how operators benefited not only from fuller rooms but also from spending on food, events and related services.
The figures point to a market that is gaining depth rather than relying on one-off demand spikes. Cavendish Maxwell said guest numbers in Oman’s three- to five-star hotels rose 10.8 per cent to about 2.4 million in 2025. Omani nationals remained the largest single customer group, accounting for 36.1 per cent of stays, while European travellers ranked second with 27.7 per cent and posted a sharper rate of growth than the domestic segment. Asian travellers made up 14.5 per cent of the total, and GCC visitors accounted for 9 per cent, reflecting a blend of domestic, regional and longer-haul demand.
Broader tourism indicators suggest the hotel numbers are part of a wider expansion in Oman’s visitor economy. Oman Observer, citing the Ministry of Heritage and Tourism, reported that total hotel guests across categories reached 4.6 million in 2025, up 4.6 per cent, while domestic tourism remained a major support with 13.6 million local visits recorded in 2024. The same report said investment in integrated tourism complexes had exceeded OMR11.5 billion, highlighting the scale of capital being committed to accommodation, leisure and destination infrastructure.
Air traffic also gave the sector a stronger base. Oman’s airports handled 14.9 million passengers in 2025, up 2.8 per cent from 2024, with Muscat International Airport carrying 13.2 million passengers and Salalah International Airport logging 1.7 million. The Khareef season in Salalah remained an important seasonal driver, while winter demand across the country continued to support pricing power in the hotel market. November was the best month for occupancy in the three- to five-star segment at 73.8 per cent, and December delivered the highest average room rate at OMR61.4.
That pattern matters because it shows Oman is not competing on price alone. Higher occupancy paired with higher average room rates usually signals a healthier market than volume growth by itself. Officials and hotel executives quoted by Omani media have pointed to gains from European, Russian, Chinese and regional travellers, as well as stronger business-linked demand in locations such as Duqm. At The Chedi Muscat, occupancy was said to have exceeded 85 per cent, while operators in Musandam and Salalah reported firmer bookings, longer stays and stronger package demand during peak periods.
Supply, however, is rising as well, and that will test whether demand can keep pace. Cavendish Maxwell said Oman’s hotel room stock closed 2025 at roughly 36,800 rooms, with around 900 rooms added during the year. It forecast about 2,400 more rooms for delivery in 2026 and another 900 in 2027, though it added that actual completions could come in below headline pipeline figures, as happened in 2025. Separately, Oman Observer reported 38,390 rooms across hotel establishments in 2025, a wider count that reflects a broader accommodation base than the three- to five-star segment alone.
The wider economic backdrop remains supportive. Muscat Daily, citing World Travel & Tourism Council data, reported in June 2025 that Oman’s travel and tourism sector was on course to contribute about OMR3.5 billion to national GDP in 2025, up from around OMR3.3 billion in 2024, with domestic travellers accounting for 52 per cent of total tourism spending and international visitors 48 per cent. The UAE was identified as the largest source market for inbound visitors, followed by India, the UK, Germany and Bahrain. That balance between domestic and foreign demand helps explain why Oman’s hotels have been able to lift revenues even as geopolitical risk remains a watchpoint across the wider region.
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Oman