MUSCAT : Four Omani hotel operators reported lower revenue in the first half of 2026 as regional conflict triggered widespread booking cancellations from March, reversing a strong start to the year and forcing companies to tighten spending.

Management disclosures published through the Muscat Stock Exchange (MSX) and reviewed by The Arabian Stories showed that disrupted air travel, weaker international demand and falling room rates weighed on business.

The companies were Dhofar Tourism, operator of Wyndham Garden in Mirbat; International Hotels Management, which operates The Chedi Muscat; Gulf Hotels Oman, operator of Crowne Plaza; and Ubar Hotels and Resorts, which operates Golden Tulip hotels in Nizwa and Muscat.

The financial impact varied. The Chedi and Gulf Hotels Oman remained profitable but reported sharply lower earnings, while Ubar posted an operating loss. Dhofar Tourism recorded a net profit largely because of a loan waiver, despite weaker underlying business.

Some operators reported improving bookings, although the pace of recovery remained dependent on regional stability and the return of international travellers.

The Chedi Muscat said January was among its strongest months financially since opening about 23 years ago. Demand remained strong in February, supported by corporate and government business, before the conflict prompted cancellations extending into later months, including corporate Ramadan iftar bookings.

First-half revenue fell about 20% to RO 3.91 million from RO 4.88 million a year earlier. Net profit dropped to RO 5,913 from about RO 452,000, despite operating costs declining to RO 3.5 million from RO 3.87 million.

Management said its cost-saving programme reduced payroll expenses even as staff numbers increased.

Dhofar Tourism said bookings in January and February exceeded budget by 10.49%, with occupancy of about 72% and revenue of nearly RO 264,000.

Business fell sharply in March as tour operators and contracting partners invoked force majeure clauses and cancelled bookings. Revenue dropped to about RO 50,000 that month, while activity remained weak through the second quarter.

First-half revenue declined to RO 659,000 from RO 956,000, and gross profit fell to RO 45,000 from RO 205,000.

The company nevertheless reported a net profit of RO 520,000, mainly reflecting a RO 1.2 million benefit from the waiver of a Qatar National Bank loan. Management said it would otherwise have recorded a loss of about RO 700,000, compared with a RO 374,000 loss a year earlier.

Gulf Hotels Oman reported revenue of RO 3.5 million, down from RO 3.6 million. Net profit fell about 67% to RO 126,000 from RO 379,000.

The company attributed the earnings decline to both weaker business and higher costs following a room renovation project completed the previous year. Depreciation expenses rose to RO 408,000 from RO 218,000, while financing costs increased to about RO 74,000 from RO 895.

Occupancy stood at 63%, with an average daily room rate of RO 72. Management said occupancy remained relatively strong compared with competing hotels, although weaker demand put pressure on prices.

Ubar Hotels and Resorts said cancelled room bookings represented nearly RO 270,000 in revenue, equivalent to about 4,700 room nights. Disruption to cruise tourism, an important source of business for the group, compounded the decline.

Group revenue fell to about RO 1.2 million from RO 1.48 million. Ubar reported a net loss of about RO 500,000. The previous year’s loss before tax was about RO 340,000.

Its operating result swung to a loss of about RO 172,000 from a profit of RO 6,000, despite a 6% reduction in operating costs.

Combined occupancy fell to 50% from 56%, while the average daily room rate declined to RO 22 from RO 24. Revenue per available room dropped to RO 11 from RO 14.

Golden Tulip Nizwa recorded the steeper fall, with occupancy declining to 36% from 52% and revenue dropping to RO 600,000 from RO 794,000. At Golden Tulip Muscat, occupancy fell to 60% from 65%, while revenue declined to RO 630,000 from RO 686,000.

The company presentations also pointed to a broader slowdown across Oman’s hotel industry.

Sector figures cited by Ubar showed that guests at three- to five-star hotels fell to about 992,000 in the first half, from roughly 1.1 million a year earlier. Revenue declined to RO 124 million from RO 141 million, while occupancy fell to 46% from 54%.

The number of Omani guests rose to about 395,000, helping to cushion the decline in international visitors, according to the figures presented by the company.

Operators responded by tightening spending and managing cash more closely. The Chedi brought forward preventive maintenance during the quieter summer period and increased staff training, while Dhofar Tourism focused on liquidity, operating efficiency and preparations for the Khareef season.

Ubar said its priorities were keeping hotels open, maintaining essential services and meeting statutory obligations. Gulf Hotels Oman reported operating cash flow of about RO 410,000, up slightly from RO 404,000 a year earlier, despite lower profit.

Signs of recovery remained uneven.

The Chedi said new bookings had begun to exceed cancellations, with strong reservations for the fourth quarter of 2026 and the following year. Management also reported meetings between the Ministry of Heritage and Tourism and hotel general managers to discuss destination promotion and measures to reduce business risks.

Dhofar Tourism said Khareef-related activity picked up in August, driven mainly by domestic and regional visitors.

Gulf Hotels Oman said business could recover quickly if regional conditions stabilised, although demand during the summer and September remained below the previous year’s levels.

Ubar said uncertainty continued to cloud the peak-season outlook and that it would be difficult to make up the first-half shortfall.

The downturn has not halted expansion plans.

Dhofar Tourism said its Madana project in Mirbat was in the final stages of securing approval as an integrated tourism complex. The company was discussing investment opportunities with local and international strategic investors and had signed several non-disclosure agreements.

It also reported a five-year partnership with the Office of the Governor of Dhofar to attract an equestrian and horse-racing event to Mirbat.

Ubar said it was in advanced discussions over two potential expansion opportunities: a hotel property on Masirah Island and a project near Muscat called Al Wadi Hotel. Details would be disclosed through the MSX once negotiations were completed.

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