Oman’s luxury hotels gain momentum: Hotel revenues signal strong recover

Oman’s luxury hotel segment is showing solid growth, underscoring the country’s rising profile as a premium travel destination. According to the National Centre for Statistics and Information (NCSI), revenues from three- to five-star hotels rose by 19% in the first ten months of 2025, reaching OMR 222 million, or approximately $576 million.

Guest numbers and occupancy move higher

The revenue increase has been accompanied by improving operational metrics. The number of guests staying in upscale hotels rose by 10% year-on-year to nearly 2 million between January and October 2025. Average occupancy rates climbed to 54%, up from 47% in the same period of 2024, reflecting stronger demand for high-quality accommodation from both international and domestic travelers.

Oman strengthens its luxury tourism appeal

Higher occupancy levels point to Oman’s growing attractiveness as a luxury destination. Demand is supported by the country’s blend of natural landscapes, cultural heritage and a more restrained tourism model compared with mass-market destinations in the region. Continued infrastructure development, improved accessibility and targeted international promotion are drawing travelers seeking premium services and authentic experiences.

Investment and sustainability shape growth

Future expansion of Oman’s luxury hospitality sector is closely tied to sustained investment and a strong focus on sustainability. The country is prioritizing environmentally responsible tourism, conservation of natural assets and controlled growth of hotel capacity. This strategy allows revenue growth without placing excessive strain on ecosystems and aligns with the preferences of high-end travelers who value sustainability alongside comfort.

Rising wealth supports long-term demand

Growing numbers of affluent travelers in the Middle East and Asia are providing additional support for Oman’s luxury tourism market. The country is increasingly positioned as a destination for exclusive, personalized travel, combining privacy, heritage and high service standards. This positioning creates a solid foundation for further growth in hotel occupancy and premium offerings over the medium term.

As International Investment experts report, the rise in revenues and occupancy across Oman’s luxury hotels signals a structural strengthening of the country’s tourism sector. A focus on sustainability, limited supply growth and high-quality infrastructure enhances the long-term investment appeal of Oman’s hospitality market and supports broader economic diversification beyond hydrocarbons.