- Home
- /
- News
- /
- March 2026
- /
- Saudi Hotels Show Strength While UAE Demand Sinks
Saudi Hotels Show Strength While UAE Demand Sinks

Summary
While the UAE's hotel market faces struggles with low bookings, Saudi Arabian cities are showing resilience due to domestic demand, fewer available rooms, and strategic location. Jeddah and Riyadh perform better than Eastern Province because of their proximity to the conflict. Saudi Arabia's larger population and fewer hotel rooms give it an advantage.
Key Insights
- •Cities like Jeddah on the Red Sea perform better due to their distance from the conflict compared to the Eastern Province, which is more affected.
- •Saudi Arabia's hotel market is more resilient than the UAE's due to its larger population (35-36 million) and fewer hotel rooms than Dubai.
Action Items
- ✓Consider how your property's geographic location could affect occupancy and pricing in response to regional political and economic events.Effort: lowImpact: medium
Related Videos

More from Pricing & Profitability

The Caribbean tourism sector demonstrated remarkable resilience in 2025, reaching its strongest performance since before the pandemic with approximately 35 million stay-over arrivals, a 2.5% increase. Despite a major hurricane battering Jamaica and declines from key markets, South American arrivals surged by 23.7%. This showcases the region's recovery potential.

Hyatt's focus on luxury accommodations gives it an edge over Hilton, according to analysts at Barclays, Morgan Stanley, and Deutsche Bank. Hyatt has a significantly higher percentage of luxury rooms (22-31%) than Hilton (2.4%). This strategic positioning is expected to drive higher revenue from high-income travelers, who are considered more resilient.

Rising fuel prices, spurred by the Iran conflict, are dramatically impacting the airline industry, potentially leading to significant profit losses. Airlines are responding by increasing baggage fees, and, as United's CEO stated, raising fares by 20%. This economic shift could reshape travel and potentially impact short-term rental demand.
Curated by Learn STR by GoStudioM

