Middle East Hotel Construction Pipeline Reaches New All-Time High of 724 Projects/178,003 Rooms; LE Releases 2028 New Hotel Openings Forecast

According to the Q2 2026 Middle East Construction Pipeline Trend Report from Lodging Econometrics (LE), the region's hotel construction pipeline stands at a new all-time high of 724 projects/178,003 rooms at the close of the quarter, up 11% by projects and 10% by rooms year-over-year (YOY).

By pipeline stage, projects currently under construction stand at 330 projects/82,353 rooms, accounting for 46% of the total pipeline by both projects and rooms. Projects scheduled to start construction within the next 12 months stand at 173 projects/52,678 rooms, up 18% by projects and 16% by rooms YOY. Projects in the early planning stage reach a new all-time high of 221 projects/42,972 rooms, up 33% by projects and 45% by rooms YOY.

Among chain scales, the luxury segment reaches a new all-time high of 207 projects with 45,446 rooms. The upper upscale chain scale follows with a record 178 projects accounting for 43,896 rooms, up 19% by projects and 14% by rooms YOY, while the upscale chain scale stands at 184 projects/52,621 rooms, up 12% by both projects and rooms YOY. The upper midscale chain scale totals 64 projects/17,555 rooms, up 14% by projects and 9% by rooms YOY, and the midscale chain scale climbs to 20 projects/4,528 rooms, up 33% by projects and 55% by rooms YOY. Luxury and upscale remain the region's two largest chain scales by project count, together accounting for 54% of the total projects and 55% of rooms in the region’s total pipeline.

At the close of the quarter, combined hotel renovations and brand conversions reach a new all-time high of 101 projects/29,658 rooms, up 51% by projects YOY, driven by brand conversions alone reaching a record 88 projects/24,466 rooms, up 47% by projects and 92% by rooms YOY.

LE analysts report that Saudi Arabia leads all Middle Eastern countries with 387 projects/105,648 rooms, up 13% by projects and 15% by rooms YOY. Egypt follows, reaching a new all-time high of 167 projects/35,185 rooms, up 31% by projects and 25% by rooms YOY. The United Arab Emirates ranks third with 103 projects/24,985 rooms, up 3% by projects YOY, followed by Oman with 27 projects/4,624 rooms and Iraq with 10 projects/2,331 rooms. Together, these five countries account for 96% of the region's total pipeline by projects and 97% by rooms.

By city, Riyadh tops the Middle East with 106 projects and a record-high 21,666 rooms, up 20% by projects and 19% by rooms YOY. Cairo, Egypt follows with 63 projects/12,618 rooms, up 31% by projects and 18% by rooms YOY, then Jeddah with 62 projects/14,435 rooms, up 11% by projects and 14% by rooms YOY, and Dubai with 60 projects/13,828 rooms, and Makkah with 34 projects/21,689 rooms, up 17% by projects and 18% by rooms YOY. Combined, these five cities represent 45% of the Middle East's total pipeline by projects and 47% by rooms.

Looking at recent and forecasted openings, the Middle East opened 22 new hotels/3,981 rooms in the first half of 2026, with LE forecasting an additional 61 new hotels/11,168 rooms to open in the second half of the year, bringing the 2026 total to 83 new hotels/15,149 rooms. Looking further ahead, LE forecasts 91 new hotels/22,875 rooms to open across the Middle East in 2027.

Releasing for the first time this quarter, LE's forecast for new hotel openings in 2028 projects 102 new hotels/24,284 rooms to open across the Middle East, underscoring the continued strength and long-term momentum of the region's hotel development pipeline.