Saudi Arabia Commands 53% of Middle East Hotel Pipeline as Region Hits Record 724 Projects
Saudi Arabia holds 387 projects accounting for 105,648 rooms in the Middle East’s hotel construction pipeline at the close of Q2 2026 — 53% of the region’s 724 projects and 59% of its 178,003 rooms. The Kingdom’s pipeline grew 13% by projects and 15% by rooms year-over-year, according to Lodging Econometrics’ Q2 2026 Middle East Construction Pipeline Trend Report.
The regional total represents an 11% increase by projects and 10% by rooms compared to the same quarter last year, marking a new all-time high.
Egypt ranks second with 167 projects and 35,185 rooms, up 31% by projects and 25% by rooms year-over-year. The United Arab Emirates follows with 103 projects and 24,985 rooms, a 3% increase by projects. Oman accounts for 27 projects and 4,624 rooms, while Iraq holds 10 projects and 2,331 rooms. Together, these five countries represent 96% of the region’s total pipeline by projects and 97% by rooms.
Riyadh leads all Middle East cities with 106 projects and 21,666 rooms, up 20% by projects and 19% by rooms year-over-year. Cairo follows with 63 projects and 12,618 rooms, Jeddah with 62 projects and 14,435 rooms, Dubai with 60 projects and 13,828 rooms, and Makkah with 34 projects and 21,689 rooms. These five cities combined account for 45% of the regional pipeline by projects and 47% by rooms.
Of the total pipeline, 330 projects with 82,353 rooms are currently under construction, representing 46% of all projects and rooms. Another 173 projects with 52,678 rooms are scheduled to start construction within the next 12 months, up 18% by projects and 16% by rooms year-over-year. Projects in early planning reached a new high of 221 properties with 42,972 rooms, up 33% by projects and 45% by rooms.
The luxury segment stands at 207 projects and 45,446 rooms, while upper upscale accounts for 178 projects and 43,896 rooms. The upscale chain scale holds 184 projects and 52,621 rooms. Together, luxury and upscale represent 54% of total projects and 55% of rooms in the region’s pipeline.
Brand conversions reached 88 projects with 24,466 rooms, up 47% by projects and 92% by rooms year-over-year. Combined with renovations, the total stands at 101 projects and 29,658 rooms, a 51% increase by projects.
The region opened 22 new hotels with 3,981 rooms in the first half of 2026. Lodging Econometrics forecasts 61 additional properties with 11,168 rooms to open in the second half, bringing the 2026 total to 83 hotels and 15,149 rooms. The firm projects 91 new hotels with 22,875 rooms to open in 2027 and 102 hotels with 24,284 rooms in 2028.