Pipeline Reaches New Level
Projects under construction accounted for 330 developments and 82,353 rooms, representing 46% of the full pipeline by both projects and rooms.
Another 173 projects, with 52,678 rooms, were scheduled to begin construction within the next 12 months. That category increased by 18% in project count, and 16% in room count from a year earlier.
Early planning activity included 221 projects with 42,972 rooms, up 33% in projects and 45% in rooms year over year.
Luxury, Upscale Projects Account for Most Development
The luxury hotel segment contained 207 projects with 45,446 rooms, the largest project count among chain scales. The upscale segment followed with 184 projects and 52,621 rooms.
Together, luxury and upscale developments made up 54% of all projects in the Middle East pipeline and 55% of planned rooms.
The upper-upscale segment recorded 178 projects and 43,896 rooms, up 19% in projects and 14% in rooms from a year earlier. The upper-midscale segment included 64 projects and 17,555 rooms, up 14% in projects and 9% in rooms. Midscale development reached 20 projects with 4,528 rooms, up 33% in projects and 55% in rooms from the second quarter of 2025.
Conversions and Renovations Increase
Hotel renovations and brand conversions combined reached 101 projects with 29,658 rooms at the end of the quarter, up 51% from a year earlier.
Brand conversions accounted for 88 projects containing 24,466 rooms. Conversion projects increased 47%, while the number of rooms involved rose 92% from the prior year.
Saudi Arabia Leads Country Pipeline
Saudi Arabia had the largest hotel development pipeline in the Middle East, with 387 projects and 105,648 rooms. The country’s project count rose 13% year over year, and its room count increased 15%.
Egypt ranked second with 167 projects and 35,185 rooms, up 31% in projects and 25% in rooms from the same period in 2025.
The United Arab Emirates ranked third with 103 projects and 24,985 rooms, representing a 3% increase in projects. Oman followed with 27 projects and 4,624 rooms, while Iraq had 10 projects containing 2,331 rooms.
Saudi Arabia, Egypt, the United Arab Emirates, Oman and Iraq accounted for 96% of all Middle East hotel projects and 97% of rooms in the regional pipeline.
Riyadh Has the Largest City Pipeline
Riyadh led the region’s cities in hotel projects, with 106 and 21,666 rooms. The Saudi capital’s pipeline increased 20% in projects and 19% in rooms from a year earlier.
Cairo ranked second with 63 projects and 12,618 rooms, followed by Jeddah with 62 projects and 14,435 rooms. Dubai had 60 projects with 13,828 rooms, while Makkah had 34 projects containing 21,689 rooms.
The five cities represented 45% of Middle East pipeline projects and 47% of planned rooms.
Openings Forecast Through 2028
The Middle East opened 22 hotels with 3,981 rooms during the first half of 2026. Another 61 hotels containing 11,168 rooms are expected to open during the second half of the year, bringing the projected 2026 total to 83 hotels and 15,149 rooms.
Lodging Econometrics forecasts 91 openings with 22,875 rooms in 2027 and 102 hotels with 24,284 rooms in 2028.




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