Mabrian’s latest hospitality market report concludes that strengthening mid-range offerings and realigning hotel experiences with global standards, particularly among upscale and luxury accommodation, is essential for boosting competitiveness in Middle East hotel market. The ultimate goal is to foster increased international arrivals and sustainable tourism growth in the region, as well as attracting global hospitality brands and enhancing profitability across hotel segments.
Dubai (United Arab Emirates)-Saudi Arabia’s bold investment in tourism and hospitality continues to reshape the regional travel landscape, with new insights from global travel intelligence platform Mabrian, part of The Data Appeal Company – Almawave Group, highlighting significant potential to further enhance guest experiences and drive profitability across the Kingdom’s growing accommodation sector.
Launched ahead of Arabian Travel Market 2025, the study, “Beyond The Stars: Aligning Expectations And Experiences In Middle Eastern Hospitality”, explores six of the region’s key tourism markets – Saudi Arabia, United Arab Emirates, Qatar, Oman, Jordan, and Egypt – which collectively represent nearly 90% of international visitor arrivals to the Middle East. The analysis draws on real-time data to assess the balance of hotel categories, pricing trends, and guest satisfaction levels across a mix of long-haul and regional source markets.
This is the second instalment in Mabrian’s series of Middle East market reports, aimed at fostering industry discussion on key trends shaping the future of tourism in the region. The findings outline how optimising mid-range offerings and better aligning guest expectations with hotel classification can play a pivotal role in achieving the goals of Saudi Vision 2030, especially in terms of tourism diversification and global competitiveness.
“The Kingdom has made remarkable strides in positioning itself as a global tourism hub, and data such as this offers the hospitality sector a powerful tool to fine-tune strategy and enhance performance,” said Sonia Huerta, Advisory Director & SVP at Mabrian. “To reinforce Saudi Arabia’s position as a destination of global stature, the report highlights the importance of ensuring that 5-star experiences truly reflect premium value, while also expanding high-quality mid-range options to attract a broader base of international travellers.”
Saudi Arabia: Balancing premium ambition with guest experience & consistency
The Kingdom’s hotel landscape shows a relatively even distribution across 3-, 4-, and 5-star categories, putting it in a strong position to grow across multiple traveller segments. However, Mabrian’s data reveals a critical gap between average room rates and guest satisfaction in the 5-star category – a disconnect that presents both a challenge and an opportunity.
With an average nightly rate of $299 for 5-star hotels over the next six months, Saudi Arabia is among the region’s highest-priced markets – yet satisfaction levels suggest the guest experience does not always align with the cost. Closing this gap will be essential to ensuring repeat visitation and to safeguarding the Kingdom’s reputation among high-value international travellers.
“Saudi Arabia is undergoing one of the most ambitious tourism transformations anywhere in the world,” added Huerta. “By focusing on guest experience consistency and enhancing perceived value, the Kingdom can lead a new chapter for premium hospitality in the region.”
As the country invests heavily in giga-projects and destination infrastructure, there is also a major opportunity to grow mid-range capacity and welcome new hotel brands seeking long-term footholds in a high-potential market.
Three scenarios unveiling opportunities for development and growth The report identifies three primary development scenarios across the region:
- Scenario 1: Balanced Markets – UAE, Saudi Arabia, and Egypt have relatively even hotel category distribution, making them strong candidates for growing “bridge categories” that combine upscale elements with mid-market pricing. The report demonstrates that optimising segments to balance pricing with travellers’ expectations regarding lodging experiences will enhance overall hotel satisfaction and profitability.
- Scenario2:Mid-Led Markets–Omanand Jordanrelyheavilyon3-star hotels, offering potential to diversify and enhance economy and midscale offerings to attract a wider demographic of travellers, thereby fostering an increase in visitor volume.
- Scenario 3: Luxury-Dominant Markets – Qatar is heavily weighted towards the premium end, with nearly 60% of hotel properties classed as 5-star properties. By offering opportunities to expand more affordable segments and improve satisfaction through greater price/experience alignment.
According to Huerta, “hotel pricing in the Middle East remains extremely competitive, but there is work to be done in enhancing perceived value and experience delivery. These are essential for encouraging repeat visits and long-stay tourism.” As Mabrian’s expert points out, “by offering a distinctive value proposition rooted in culture, heritage, nature, and outdoor experiences – while maintaining attractive price ranges – these Middle East countries can compete on their own terms directly with other leading international destinations.”
Key opportunities for destinations
Mabrian’s study highlights several priorities for Middle East destinations derived from data insights. These include:
- The necessity of realigning hotel categorisation and experiences with global standards to expand long-haul visitation, particularly important for luxury and upscale accommodation
- The imperative to invest in upgrades and experiential innovation in 4- and 3-star hotels, which play a crucial role in growing arrivals
- The importance of tailoring hospitality services to ensure a balance between local character and international standards, thereby enhancing guest satisfaction
“For Saudi Arabia to fully realise the ambitions of Vision 2030, the hospitality sector must deliver both quality and scale – with a focus on satisfaction, consistency, and experiential value,” said Huerta.
“Expanding international arrivals, boosting occupancy across the year, and achieving sustainable growth will depend on building trust in the Saudi hospitality brand – from premium stays to mid-market comfort. That’s where the next phase of opportunity lies.”
