Middle East Hotel Construction Pipeline Hits All-Time High in Q4 2025 :: Hospitality Trends

The Middle East’s hotel construction pipeline reached a record 710 projects and 176,402 rooms in Q4 2025, with Saudi Arabia and Egypt accounting for the largest share of new developments and strong year-over-year growth across all segments.

Record Growth in Middle East Hotel Construction

The latest report from Lodging Econometrics (LE) shows that the Middle East’s hotel construction pipeline reached a record high at the end of the fourth quarter of 2025. The region now has 710 hotel projects in development, representing 176,402 rooms. This marks a 15% increase in projects and a 13% rise in rooms compared to the previous year. The data highlights ongoing expansion and investment in the region’s hospitality sector.

Project Stages and Segment Breakdown

Of the total pipeline, 332 projects (84,172 rooms) are currently under construction, reflecting a 10% year-over-year increase in project count and a 5% rise in rooms. Projects scheduled to begin construction within the next 12 months have reached a record with 176 projects (54,060 rooms), showing a 13% increase in projects and a 27% increase in rooms compared to last year. Early planning stages also reached a record, with 202 projects (38,170 rooms), up 25% in project count and 18% in rooms year over year.

Growth is evident across all hotel segments. The luxury segment reached 207 projects (45,780 rooms), an 11% increase in projects and a 6% rise in rooms. The upper upscale segment saw 168 projects (42,376 rooms), up 16% in projects and 14% in rooms. Upscale hotels account for 182 projects (53,155 rooms), a 19% increase in projects and 21% in rooms. The upper midscale segment recorded 61 projects (16,248 rooms), up 24% in projects and 17% in rooms.

Renovations and Brand Conversions

Renovations and brand conversions also contributed to the pipeline’s growth. In Q4 2025, there were 81 renovation and conversion projects (19,772 rooms), representing a 37% increase in projects and a 46% rise in rooms year-over-year. This indicates a focus not only on new builds but also on upgrading and rebranding existing properties.

Country and City Leaders in Hotel Development

Saudi Arabia leads the region with 394 projects (106,521 rooms), both record highs and representing a 25% increase in projects and a 28% rise in rooms year-over-year. Egypt follows with 140 projects (31,104 rooms), up 17% in projects and 9% in rooms. The United Arab Emirates has 104 projects (25,459 rooms), while Oman and Qatar have 28 projects (4,789 rooms) and 11 projects (2,170 rooms), respectively.

At the city level, Riyadh has the largest pipeline with 107 projects (20,936 rooms), both at record highs. Jeddah has 63 projects (14,358 rooms), Cairo 53 (11,258 rooms), and Makkah 35 (22,829 rooms). Muscat has 15 projects (2,479 rooms).

Hotel Openings and Future Outlook

In 2025, 36 new hotels (10,104 rooms) opened in the Middle East. Projections for the coming years indicate continued growth, with 93 new hotels (18,511 rooms) expected to open in 2026 and 94 new hotels (19,654 rooms) forecast for 2027. This sustained pipeline suggests ongoing investment and expansion in the region’s hospitality industry.