Gulf Hotels See Resorts Rebound While City Properties Lag, Accor Says
Accor's Gulf hotel business is recovering unevenly after the U.S.-Iran war, with resorts benefiting from returning leisure guests. In the UAE, city hotels cut room rates by 15% to 20% in August and September to keep occupancy close to target. Business travel, which matters more to urban properties, remains slow in both the UAE and Saudi Arabia.
Accor’s executive for premium, midscale and economy brands across the Middle East, Africa and Asia Pacific, Duncan O’Rourke, outlined the uneven pattern. He said the decline is concentrated in UAE city properties, while Gulf resorts are posting stronger rates.
To maintain occupancy, UAE urban hotels lowered prices by 15% to 20% in August and September, staying within 5% of their goal. Saudi city hotels in Jeddah and Riyadh also trailed the previous year, which Accor attributed to softer corporate demand.
The uneven recovery may affect travelers, hotel staff, and local businesses tied to tourism. Leisure visitors could find better resort value or busier destinations, while city hotels may use discounts that pressure margins and staffing. Corporate travelers and event organizers may see changed rates or services. Communities in the UAE and Saudi Arabia could feel these shifts through employment and spending, though the outcome remains uncertain as business travel recovers.