Oman’s Annual Hotel Revenues Reach Record RO 297.3 Million: Implications for Investors and Entrepreneurs in the Hospitality Sector
Business Reporter
Muscat, April 19
Annual hotel revenues in Oman soared to RO 297.3 million ($772 million) in 2025, marking a record high and reflecting a year-on-year increase of over 22%, according to leading real estate advisory firm Cavendish Maxwell.
In 2025, Oman’s hotels welcomed 2.4 million guests, a rise of nearly 11% from the previous year. Average occupancy rates improved by 13.6%, reaching almost 57%, while average room rates climbed to approximately RO 49 ($127), an increase of 4.7%.
The country added 900 new hotel rooms in 2025, bringing the total inventory to 36,800 rooms. An additional 2,400 rooms are expected to be introduced this year, with another 900 rooms projected for 2027.
Khalil al Zadjali, Head of Oman at Cavendish Maxwell, commented, “After a robust, record-breaking performance in 2025, Oman’s hospitality sector has entered this year with strong momentum. We are now experiencing sustained growth, supported by a more diverse mix of source markets, rising domestic demand, and higher occupancy levels.”
He noted, “While regional geopolitical developments are a significant factor, Oman’s appeal as a culturally rich destination—coupled with proactive tourism initiatives and ongoing infrastructure investments—will bolster its status as a key hub for both domestic and international travelers.”
Oman’s airport network accommodated just under 15 million passengers last year, representing a 2.8% increase compared to 2024. Travel remained steady throughout the year, with August being the peak month, as 1.66 million visitors arrived during the Khareef Dhofar Season. Muscat International Airport served as the primary gateway, handling 13.2 million passengers, or 88% of total traffic, while Salalah International Airport emerged as the strongest performer among secondary hubs, with passenger volumes rising nearly 10% to 1.7 million.
The research, which focuses on Oman’s 3-5 star hotels, indicates that the hotel industry now employs 11,200 people, a 7.3% increase from the previous year, with job creation continuing as the sector expands.
Omani nationals represented more than 36% of hotel guests in 2025, up from 33.8% a year prior, underscoring the increasing importance of domestic tourism in supporting the hospitality market. European travelers grew by 22%, making up nearly 28% of the guest demographic, followed by Asian visitors at 14.5%. Other source markets included the GCC, several Arab nations, Americans, Oceanians, and Africans.
Special Analysis by Omanet | Navigate Oman’s Market
The record-breaking performance of Oman’s hospitality sector, with annual revenues soaring to RO 297.3 million, presents robust opportunities for businesses in tourism and hospitality. As domestic travel gains traction, smart investors should consider strategically expanding their offerings to capitalize on this growing domestic demand while remaining mindful of potential regional geopolitical risks. With new hotels and a diversified guest base on the rise, entrepreneurs have a unique chance to enrich the Omani tourism landscape and reap significant rewards.
