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Oman’s 3-5 star hotels record 11% revenue decline through August

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Revenues of Oman’s 3- to 5-star hotels fell 11% to approximately RO156.5 million ($407.02 million)  by the end of August 2026, compared with RO175.8 million ($457 million) during the same period in 2025, according to data from the National Centre for Statistics and Information (NCSI).

The decline was accompanied by weaker occupancy and fewer hotel guests. The average occupancy rate stood at 46.5%, down from 52.9% a year earlier, representing a decline of 6.4 percentage points. The number of guests fell 10.7% to 1.35 million from 1.52 million.

Omani guests remained the largest segment, increasing 2.7% to 583,702 and accounting for about 43.1% of total guests. Asian visitors also increased 3% to 220,955.

However, several key international markets recorded significant declines. European guests fell 29.8% to 273,654, while visitors from GCC countries declined 19% to 119,000. Guests from other Arab countries decreased 9% to 60,223, while American visitors fell 25.6% to 36,756.

The sharpest decline was recorded among visitors from Oceania, whose numbers dropped 57.7% to 12,475. African guests declined marginally by 2.1% to 9,698.

Despite the year-to-date decline, hotel activity improved noticeably in August. The number of guests reached 198,394, up 22.1% from 162,427 in July and significantly higher than the 135,080 recorded in June.

Hotel revenues also strengthened during the month, rising 29.1% to RO18.24 million in August from RO14.13 million in July. June revenues stood at RO10.77 million.

Occupancy followed the same upward trend, reaching 51.4% in August compared with 42.6% in July and 36% in June. The monthly increase of 8.8 percentage points indicates a stronger summer performance for Oman’s rated hotel sector, although cumulative revenues, guest numbers and occupancy remained below the levels recorded during the corresponding period of 2025.

The figures point to a mixed performance in Oman’s hospitality sector in 2026, with weaker international arrivals weighing on overall year-to-date results while domestic demand and improved activity in August provided some support. -TradeArabia News Service

 


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