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ADRs grow significantly in GCC with luxury hotel rooms contributing to growth

Published 3 weeks ago2 minute read

New research from STR, commissioned by Arabian Travel Market (ATM), reveals a strong hospitality sector growth in the GCC in 2024. Government initiatives like Saudi Vision 2030 and the UAE's 'We the UAE 2031' campaign are driving the expansion. Luxury hospitality is a key contributor, and industry leaders will share insights at ATM 2025 on the region’s growing tourism appeal.

Online Bureau


The hospitality sector across the GCC is experiencing robust growth, according to new research by STR, conducted on behalf of Arabian Travel Market (ATM). The report shows a significant increase in occupancy rates and revenue per available room (RevPAR) in 2024, with GCC-wide occupancy reaching 69.5 per cent, surpassing pre-pandemic levels. This growth is attributed to major government initiatives like Saudi Vision 2030 and the UAE’s ‘We the UAE 2031’ campaign, which are fostering infrastructure enhancements and boosting tourism experiences.

The GCC has seen the addition of over 35,000 hotel rooms in the past decade, with the luxury segment making up 19 per cent of the total room count, up from 16 per cent ten years ago. As more than 33,000 rooms are under development, Saudi Arabia is expected to see the highest influx of luxury rooms, positioning the region as a key player in global tourism.

Danielle Curtis, Exhibition Director at ATM, commented on the findings, noting that luxury hospitality continues to be a driving force in the region’s tourism growth. “Luxury hotel exhibitors will play a pivotal role at ATM 2025, showcasing innovative hospitality concepts that appeal to high-spending travellers. As demand for premium travel rises, the GCC is well-positioned to solidify its reputation as a luxury tourism hub,” she said.

Top hospitality leaders such as Haitham Mattar of IHG Hotels & Resorts will share insights into the region’s evolving tourism landscape. Mattar stated, “Demand is set to rise across hotel segments due to development projects and increased leisure and business travel. At ATM 2025, we look forward to connecting with industry leaders and showcasing our contributions to the GCC’s hospitality evolution.”

ATM 2025, taking place from 28 April to 1 May, will bring together global travel professionals to explore the latest trends, innovations, and opportunities in the tourism and hospitality sectors.

  • Published On Feb 24, 2025 at 04:28 PM IST

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