Supersizing smartly for a sustained future

The Middle East hospitality market is in an unprecedented surge, with the UAE's nearrecord occupancy and Saudi Arabia's 275,000-key development pipeline. Operators are responding with a new wave of "supersizing" - through targeted refurbishments, ambitious new builds, and integrated masterplans, says NATHAN HONES*, COO and Partner at Carter Hones Associates.

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HAVING worked in the Middle East for more than two decades, I can say with confidence that the region's hospitality market has seldom been as robust as it is today.

Hotels across the UAE are operating at near-record levels, with national revenues topping $12 billion in 2024 and average occupancy rates climbing to 78 per cent. In Dubai, demand reached the point earlier this year where hotels held above 93 percent occupancy for 10 straight days — an almost unheard-of run in global terms.

Saudi Arabia is pushing the scale even further. With more than 275,000 keys in its pipeline, it is now the second-largest development market in the world, behind only China. The kingdom's Vision 2030 strategy is reshaping not just its skyline but its entire tourism economy, with a target of welcoming 150 million annual visitors by the end of the decade.

Against this backdrop, operators are under enormous pressure to expand capacity, enhance guest experience, and ensure that new investments are resilient. The result is a wave of “supersizing”. Yet supersizing in 2025 is not about size for its own sake. It is about creating smarter assets: hotels and destinations that work harder commercially, operate more efficiently, and deliver lasting value.

SUPERSIZING THROUGH REFURBISHMENT