The hospitality industry in the Gulf Cooperation Council (GCC) region is set for a transformative year in 2025. Several trends, including immersive storytelling, event tourism, a shift towards middle-market hospitality, the rise of branded residences, innovative food and beverage services, and the emphasis on local talent recruitment, are expected to shape the sector’s future.
In 2024, Riyadh led the region with the highest average daily rate (ADR) at $290, followed by Dubai at $221 and Kuwait City at $192. Abu Dhabi led in occupancy rates, achieving 85 percent, with Dubai and Fujairah close behind at 82 percent. As 2025 unfolds, leisure destinations such as Ras Al Khaimah and Jeddah are expected to experience higher occupancy rates, while business hubs like Riyadh are likely to maintain their dominance in ADR.
Immersive storytelling is a key trend in the hospitality sector, with hotels using this technique to enhance guest experiences. This trend is expected to intensify in 2025, with digital campaigns supporting the storytelling efforts. However, aligning online marketing with service delivery will be crucial to maintaining credibility and managing reputational risks.
Event tourism is another significant trend, with major GCC cities investing heavily in this area. Saudi Arabia’s hosting of the 2034 World Cup and the 2029 Asian Winter Games highlights the region’s event diversification. Bahrain is also a hub for MICE (meetings, incentives, conferences, and exhibitions) tourism.
A slow but noticeable pivot towards middle-market hospitality is underway. Operators such as Accor, Marriott, and Wyndham are introducing middle-market brands to meet rising competition and achieve quicker returns. In 2025, properties such as Moxy in Dubai’s Al Barsha and Mama Shelter in Business Bay are expected to contribute to this growing segment.
Branded residences are growing rapidly in the Middle East, with Dubai leading. Emerging destinations like Ras Al Khaimah and Muscat are also entering this market. In the coming years, the supply of branded residences in Jeddah, Makkah, and Doha is expected to increase threefold.
In the food and beverage (F&B) segment, hotel chains are moving beyond generic all-day dining to create design-driven spaces with distinctive culinary experiences. Trends such as health-oriented breakfast services and transparency through labels like “fair trade,” “local,” and “organic” are also gaining prominence.
Lastly, recruiting local talent is becoming a priority in the GCC’s hospitality industry. Oman’s 2024 regulations mandating more local roles in hospitality signal a regional trend towards empowering local talent. Through 2025, these initiatives will result in a stronger local managerial presence.
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