Saudi Arabia and Egypt Drive Middle East Hotel Pipeline to Record High of 710 Projects in Q4 2025

The Q4 2025 Hotel Construction Pipeline Trend Report for the Middle East from Lodging Econometrics (LE) states that at the close of the fourth quarter, the region’s total pipeline stands at a record-high 710 projects/176,402 rooms. The region shows robust growth with a 15% year-over-year (YOY) increase in projects and a 13% YOY rise in rooms.

At Q4, 332 projects/84,172 rooms are under construction throughout the Middle East, up 10% YOY by projects and 5% by rooms. Projects scheduled to start construction anytime within the next 12 months reached a record-high room count of 176 projects/54,060 rooms, up 13% YOY by projects and 27% by rooms. Projects in early planning reached a record-high project count and stand at 202 projects/38,170 rooms, up 25% YOY by projects and 18% by rooms.

The luxury chain scale reached record highs with 207 projects/45,780 rooms, showing an 11% YOY increase in projects and 6% in rooms. The upper upscale segment also achieved record highs with 168 projects/42,376 rooms, up 16% YOY by projects and 14% by rooms. Upscale projects stand at 182 projects/53,155 rooms, up 19% YOY by projects and 21% by rooms, while upper midscale projects reached 61 projects/16,248 rooms, up 24% by projects and 17% by rooms.

Combined hotel renovations and brand conversions in the Middle East reached a record-high project count in Q4 2025 with 81 projects/19,772 rooms, up 37% YOY by projects and 46% by rooms.

Countries with the most projects in the construction pipeline are Saudi Arabia, with record-high project and room counts of 394 projects/106,521 rooms, up 25% YOY by projects and 28% by rooms, and Egypt, also achieving record highs with 140 projects/31,104 rooms, up 17% by projects and 9% by rooms. The United Arab Emirates follows with 104 projects/25,459 rooms, then Oman with 28 projects/4,789 rooms, and Qatar with 11 projects/2,170 rooms.

The cities with the largest pipelines are Riyadh, with record-high project and room counts of 107 projects/20,936 rooms, followed by Jeddah with a record-high project count of 63 projects/14,358 rooms, Cairo with 53 projects/11,258 rooms, and Makkah with 35 projects/22,829 rooms. Muscat follows with 15 projects/2,479 rooms.

The Middle East had 36 new hotels/10,104 rooms open in 2025. Looking ahead, the LE forecast for new hotel openings shows 93 new hotels/18,511 rooms expected to open in 2026, and 94 new hotels/19,654 rooms are forecast to open in 2027.