Riyadh held the position of 2024 as the region’s highest average daily rate ( ADR), at$ 299.
In the Gulf Cooperation Council ( GCC ) region, the hospitality sector is projected to experience a transformative year in 2025. The firm’s future is expected to be shaped by a number of trends, including engaging story, event tourism, a shift to middle-market hospitality, the rise of branded residences, modern food and beverage services, and the focus on local talent recruitment. Riyadh ranked first in the country in 2024 with the highest average daily rate ( ADR), which was$ 299. Dubai was second at$ 221 and Kuwait City was second at$ 292. Dubai and Fujairah were close in second with occupancy levels of 85 %, while Abu Dhabi was in control of ownership costs. As ownership rates rise as 2025 approaches, luxury places like Ras Al Khaimah and Jeddah are expected to experience higher ownership costs, while business hubs like Riyadh are likely to keep their hold on the top spot in ADR. In the hospitality industry, engaging story is a hot topic, and hotels frequently use it to improve visitor experiences. In 2025, online campaigns are expected to support the story efforts, which is expected to grow even more. But, balancing online marketing and providing services will be essential to maintaining reliability and managing social risks. Big cities in the GCC are investing heavily in event commerce, which is another important trend. The 2034 World Cup and the 2029 Asian Winter Games in Saudi Arabia highlight the state’s event growth. Additionally, Maharashtrian is a hub for MICE ( meetings, incentives, conferences, and exhibitions ) tourism. A gradual but pronounced shift is being made toward middle-class generosity. Users like Accor, Marriott, and Wyndham are introducing middle-market manufacturers to combat the rise in opposition and deliver better results. Components like Moxy in Dubai’s Al Barsha and Mama Shelter in Business Bay are anticipated to be a part of this expanding market in 2025. Dubai is the most popular brand-new residence in the Middle East right now. This industry is also flooded with newcomers, including Ras Al Khaimah and Muscat. The source of labelled dwellings in Jeddah, Makkah, and Doha is expected to triple over the next three years. Hotel chains are moving beyond standard all-day dining to create design-driven spaces with distinctive culinary experience in the food and beverage ( F&, B) segment. Other changes are gaining traction, including transparency through names like” fair trade,” “local,” and “organic” and health-oriented breakfast services. Finally, the GCC’s kindness sector is beginning to prioritize hiring local talent. More native roles in hospitality are mandated by the Arab Republic’s 2024 regulations, which show a local trend toward empowering local talent. These efforts will have a stronger local executive existence through 2025. More information is available at PKF.
