The hospitality industry in the GCC is witnessing a remarkable resurgence, with fresh data from STR, compiled for Arabian Travel Market (ATM) 2025, highlighting significant expansion across the region. As the Middle East continues to position itself as a premier travel destination, luxury hospitality and government-led initiatives are playing a pivotal role in driving growth.
Strong performance in GCC hospitality sector
According to the report, Revenue per Available Room (RevPAR) across Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE increased by 5.4% in 2024 compared to the previous year. This growth is primarily driven by higher occupancy rates, which reached 69.5%, surpassing pre-pandemic levels. The findings underscore the GCC’s successful positioning as a world-class tourism and investment hub.
Luxury hospitality continues to be a key driver of regional growth, with the Average Daily Rate (ADR) rising by 2.4% in 2024. Over the past decade, the region has added more than 35,000 hotel rooms, with the share of luxury rooms rising from 16% to 19%. Saudi Arabia is leading this transformation, with over 33,000 luxury hotel rooms currently under development, surpassing the total number of existing luxury accommodations in the Kingdom.
Government initiatives fuelling hospitality expansion
Transformational projects such as Saudi Vision 2030 and the UAE’s ‘We the UAE 2031’ campaign have played an essential role in boosting the hospitality industry. These initiatives focus on economic diversification, infrastructure development, and enhancing the tourism experience, positioning the GCC as a competitive player in the global hospitality market.
Danielle Curtis, Exhibition Director ME, Arabian Travel Market, commented: “Luxury hospitality continues to be a driving force behind the region’s tourism growth, offering exceptional experiences that attract high-spending travellers from around the world. Luxury hotel exhibitors will be a key part of ATM 2025, showcasing the innovative hospitality concepts that are redefining the industry.”
Luxury hospitality brands set to dominate ATM 2025
ATM 2025, taking place from 28 April to 1 May at Dubai World Trade Centre, will feature a diverse lineup of leading luxury hospitality brands, including:
- IHG Hotels & Resorts
- Jumeirah International
- Address Hotels + Resorts
- Mandarin Oriental
- Four Seasons
- Kempinski
- Kerzner International
- The Peninsula Hotels
- Hilton Worldwide
- Wyndham Hotels & Resorts Middle East
These brands will showcase the latest trends and innovations shaping the industry. IHG’s Managing Director for India, the Middle East & Africa, Haitham Mattar, highlighted how giga and mega projects, increased business activity, and the rise in leisure travel are driving demand for luxury hotels across the region: “As we look forward to ATM 2025, we anticipate a great opportunity to build meaningful connections and showcase how IHG is helping shape the future of hospitality in the region.”
A thriving future for hospitality in the GCC
As Arabian Travel Market 2025 approaches, the GCC hospitality sector is set for unprecedented growth. Driven by government initiatives, increasing luxury demand, and innovative tourism projects, the region is solidifying its position as a global leader in high-end travel and hospitality.
ATM 2025 remains a must-attend event.
📅 Event Dates: 28 April – 1 May 2025
📍 Location: Dubai World Trade Centre
Stay tuned for more updates on SA-FE.org, your trusted source for the latest in GCC tourism and hospitality.
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Photo top of page – the SAUDI stand @ ATM 2025
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