Oman’s Hotel Revenues Hit Record High in 2025: Key Insights for Investors and Business Owners
Muscat – In a remarkable achievement, Oman’s annual hotel revenues reached OMR 297.3 million (approximately US $772 million) in 2025, marking a record increase of over 22% compared to the previous year, according to a report by Cavendish Maxwell, a real estate advisory and property consultancy.
The country’s hotels welcomed 2.4 million guests last year, representing an increase of nearly 11% from 2024. The average occupancy rate climbed by 13.6% to nearly 57%, and average room rates rose by 4.7% to approximately OMR 49 ($127), revealing positive trends in Oman’s hospitality sector.
In 2025, Oman introduced 900 new hotel rooms, bringing the total inventory to 36,800, with an additional 2,400 rooms expected to enter the market in 2026 and 900 more slated for 2027.
Khalil Al Zadjali, Head of Oman at Cavendish Maxwell, stated, “Following a record-breaking performance in 2025, Oman’s hospitality sector has started this year with strong momentum. We are now experiencing sustained growth, driven by a more diversified range of source markets, increasing domestic demand, and rising occupancy levels.”
In addition, Oman’s airport network serviced nearly 15 million passengers in the past year, reflecting a 2.8% increase from 2024. The travel peak occurred in August, coinciding with Salalah’s Khareef season, when 1.66 million visitors traveled to Oman. Muscat International Airport remained pivotal to the nation’s air connectivity, accommodating 13.2 million passengers—approximately 88% of total traffic.
Salalah International Airport emerged as the strongest performer among secondary hubs, with a nearly 10% rise in passenger volume, totaling 1.7 million.
The analysis, focusing on Oman’s 3-5 star hotels, also highlighted that the hotel industry now employs 11,200 individuals, reflecting a 7.3% increase from the previous year, illustrating ongoing job creation within the sector.
Omani nationals comprised more than 36% of hotel guests in 2025, up from 33.8%, underscoring the growing significance of domestic tourism in bolstering the hospitality market. Meanwhile, European visitors surged by 22%, accounting for nearly 28% of all guests, with Asian travelers representing 14.5%. Other guest demographics include travelers from the GCC, Arab nations, North America, Oceania, and Africa.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s hospitality sector is experiencing remarkable growth, with revenues rising 22% in 2025, which signals increased opportunities for businesses in tourism and hospitality. As domestic demand continues to surge, coupled with a diversified traveler base, smart investors should consider expanding their operations or entering the market now to capitalize on this upward trend. However, businesses should remain vigilant regarding regional geopolitical risks, which could impact future growth.
