Gulf Region Hospitality Report

New supply builds momentum as demand cools. The Gulf Region continues to navigate a period of developer confidence. Trailing 12-month deliveries reached their highest level since early 2018 in June and are expected to keep rising through year-end. At the same time, demand has cooled substantially. The region’s average annual growth over the past year fell to 0.1 percent, compared with 1.5 percent nationally. This is a notable shift from 2015-2019, when the Gulf’s bookings averaged 2.5 percent growth versus 2.0 percent across the U.S. Recently flattening domestic consumer spending and declining inbound international travel point to softening operational conditions. As a result, the region’s occupancy, which stabilized in early 2025, is likely to resume a near-term downward trend.