Immersive storytelling, posh cuisine and branded flats: 2025’s hospitality trends

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In the year ahead, the GCC hospitality industry will build on recent years’ achievements, but competition will remain rife. There are a number of trends at play.

Growing occupancy

In 2024 Riyadh led the region with the highest average daily rate (ADR) at $290, followed by Dubai at $221 and Kuwait City at $192, data from CoStar Group’s STR found. 

Abu Dhabi led in occupancy rates, achieving 85 percent, with Dubai and Fujairah close behind, both at 82 percent.

Looking ahead, developing leisure destinations such as Ras Al Khaimah and Jeddah are expected to experience higher occupancy rates, while business hubs such as Riyadh are likely to maintain their dominance in ADR. 

However, as new supply enters the market, competitive pricing will become paramount. Niche tourism destinations focused on events or religious tourism may see moderate ADR increases due to specific high-demand periods.

Immersive storytelling 

The hospitality sector is increasingly using “immersive storytelling” to enhance guest experiences.

Hotels such as Atlantis The Palm Dubai, with its water-energy theme, or Saudi Arabia’s Boutique Group, which offers stays in royal palaces, highlight this trend.

On a broader scale, destinations such as Al Ula and Aseer in Saudi Arabia have gained international recognition by weaving cultural narratives into their offerings.

As competition intensifies, storytelling will play an even greater role in 2025, supported by dedicated digital campaigns. However, aligning online marketing with delivery will be vital to maintain credibility and avoid reputational risks.

Event tourism

Major GCC cities are investing heavily in event tourism. Riyadh’s Soundstorm 2024 brought global stars such as Martin Garrix and Eminem, setting the stage for a blockbuster 2025 line up, including Guns N’ Roses and Hans Zimmer.

In 2024, Abu Dhabi saw a 6 percent occupancy growth, passing Dubai by 3 percentage points, thanks to its rich calendar of events. This momentum will continue in 2025 with highlights such as the Abu Dhabi Festival, featuring Japan as the country of honour, and performances by Christina Aguilera and Coldplay.

Saudi Arabia’s hosting of the 2034 World Cup and 2029 Asian Winter Games, alongside Oman’s Asian Beach Handball Championship, underscores the region’s event diversification. 

• Saudi hotel rates are flat, but tourists are staying longer
• Gulf restaurants urged to keep it local
• Las Vegas’s giant Sphere entertainment centre coming to Abu Dhabi

Additionally, Bahrain is positioning itself as a hub for MICE (meetings, iIncentives, conferences and exhibitions) tourism, broadening the sector’s appeal.

Midscale hospitality

Luxury, upper upscale and upscale segments still dominate, accounting for 78 percent of the region’s hotel pipeline, according to Hotel Investment Today. 

Nonetheless a slow but noticeable pivot towards midscale hospitality is under way.

Operators such as Accor, Marriott and Wyndham are introducing midscale brands to meet rising competition and achieve quicker returns. Recent openings, such as Rove in RAK and Mercure in Muscat, highlight this trend.

In 2025, properties such as Moxy (480 rooms) in Dubai’s Al Barsha and Mama Shelter (197 rooms) in Business Bay will add to this growing segment, particularly within Saudi Arabia’s megaprojects.

Branded residences 

The Middle East leads the global boom in branded residences, a market that has grown by 180 percent. 

Dubai is at the forefront, with approximately 39,000 units, but emerging destinations such as RAK and Muscat are catching up. 

By 2029, branded residences in RAK are expected to account for 40 percent of the residential market. Similarly, projects such as St Regis Residences in Muscat reflect the region’s diversification efforts.

Savills predicts a threefold supply increase in branded residences in Jeddah, Makkah and Doha in the coming years. Greater brand diversity and standalone developments, such as Rove Hotels’ first standalone property in Dubai Marina, are expected in 2025.

Food and beverage innovation

On the food and beverage (F&B) front, hotel chains are elevating offerings, moving beyond generic all-day dining to create conceptual, design-driven spaces with a distinctive culinary experience. 

Accor’s acquisition of Paris Society in 2023 signalled a renewed focus on high-quality F&B. Hotels such as Atlantis The Royal and Emirates Towers Hotel in Dubai are forming partnerships with global chefs and brands to create culinary destinations, boosting local appeal.

Breakfast service trends are also shifting, with greater emphasis on health, wellness and reducing food waste. Millennials, who travel most frequently (35 days annually) and prioritise healthy choices, are influencing hotels to rethink breakfast offerings. 

In 2025, expect fewer traditional buffets, replaced by hybrid models combining à la carte hot dishes with cold and ambient buffet options. Equally, transparency through labels such as “fair trade”, “local” and “organic” will also gain prominence. 

Hiring local talent

Oman’s 2024 regulations mandating more local roles in hospitality signal a regional trend towards empowering local talent. Saudi Arabia is also heavily investing in its young people, offering scholarships at leading global institutions. 

Through 2025, these initiatives will result in a stronger local managerial presence, essential for delivering culturally authentic guest experiences.

Carla Falcon is managing consultant at PFK Hospitality