Hospitality Expansion in Oman: How RO 193 Million in Hotel Revenue Growth Can Boost Your Investment Strategy
Oman’s Hospitality Sector Sees Revenue Surge in 2025
MUSCAT, DECEMBER 28 — Hotel revenues in Oman experienced an impressive increase of over 18% year-on-year from January to September 2025, reaching a nine-month high of RO 193.4 million (approximately $505 million), as reported by leading real estate advisory and property consultancy, Cavendish Maxwell.
During the same period, room revenues rose nearly 21%, occupancy rates improved by 13%, and the number of hotel guests increased by 9%. Employment in the hospitality sector also saw a boost, growing by 5.3%. By the end of September, Oman had 36,300 hotel rooms in operation, with an additional 1,000 expected to be completed in the fourth quarter of 2025. Furthermore, plans are in place to add another 3,000 rooms over the next two years, bringing the total inventory to 40,300 by the end of 2027.
The Ministry of Heritage and Tourism is further enhancing the sector with RO 100 million (about $260 million) in usufruct agreements for hotels, resorts, and integrated developments. Ongoing marketing initiatives are also reinforcing Oman’s appeal as a year-round travel destination.
In the first nine months of 2025, Oman’s 3-5 star hotels welcomed 1.7 million guests, up from 1.5 million in the same period of 2024, buoyed by the Khareef Dhofar Season.
Khalil al Zadjali, Head of Oman at Cavendish Maxwell, noted, “Oman’s hospitality industry has performed robustly through the end of Q3 2025, driven by strong demand from both domestic and international travelers. Factors such as government investment, population growth, targeted marketing strategies, and changing travel trends are key to the sector’s ongoing success, with promising growth anticipated in 2026 and beyond.”
The report indicates that hotel occupancy rates rose to nearly 53%, showing a year-on-year increase of over 13%. Average room rates in the first nine months were RO 45.3 ($117), marking a slight rise of 1.3% compared to the previous year. Omani nationals comprised nearly 38.1% of travelers, followed by Europeans at around 25%, and Asian travelers making up 14.4%.
In total, Oman’s airports handled approximately 11.2 million passengers from January to September, reflecting a modest year-on-year increase of 0.7%. Despite reduced operations at Suhar Airport, total passenger volumes across Oman’s airports are projected to reach up to 14.9 million, compared to 14.5 million in 2024.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s hospitality sector is seeing robust growth, with hotel revenues up over 18% in 2025, signaling a strong recovery and increasing demand from both domestic and international travelers. This presents opportunities for investors in the hospitality and tourism sectors, especially as the government invests significantly in infrastructure and marketing to bolster Oman as a year-round destination. Savvy entrepreneurs should consider entering this burgeoning market now, capitalizing on the projected rise in room inventory and increasing guest numbers driven by both evolving travel patterns and seasonal events like the Khareef Dhofar Season.
