Brief

Hospitality leaders say Middle East hotel growth will now hinge on profit, not room count

Panelists at the 2026 Arabian Travel Market warned that future expansion must deliver higher returns and better use of existing assets.

By Felo News Desk · Published

At a panel titled “Does the Hospitality Industry Need Reinventing?” during the 2026 Arabian Travel Market in Dubai, senior executives from Radisson Hotel Group, Minor Hotels and Rotana Hotel Management Group argued that the region’s hotel boom is moving from a focus on adding rooms to a focus on profitability, asset productivity and differentiation.

What happened

The discussion, moderated by Thomas Shambler of ITP Media, examined ownership models, technology, AI, hotel economics and the pressure on operators to generate more value from existing assets. Tim Cordon, CEO of Radisson Hotel Group, said the industry’s challenge is speed, not reinvention, noting that “the pace of evolution needs to accelerate.”

What the reports add

Bizcommunity reported that Cordon highlighted the sector’s slower adoption of digital keys and AI‑enabled search compared with aviation, and warned that hotels must consider how they appear to AI agents used by consumers. Amir Golbarg, COO of Minor Hotels, linked the evolution to a return to core hospitality principles through the Anantara 2.0 proposition, emphasizing indigenous, sustainable luxury and intangible experiences. Eddy Tannous, COO of Rotana Hotel Management Group, added that despite shifts from phone to website to AI bookings, guests still expect personalised service and human intervention when problems arise.

What was said

“Reinvention implies to me that we’ve stood still,” Cordon told the panel, as reported by Bizcommunity. Golbarg said, “Intangible emotions and experiences are still led by people.” Tannous noted that “guests may have moved from booking by phone to websites and now AI platforms, but they still expect personalised service and human intervention when something goes wrong.”

How it came about

The panel’s remarks follow a wave of hotel construction across the Gulf, where nearly 126,000 new rooms are slated to open by 2030, according to a recent Felo News report. That supply surge has sparked debate about whether continued growth could outpace demand, prompting operators to stress profitability and sustainable tourism as the next strategic priority.

Key facts

  • Panel at the 2026 Arabian Travel Market in Dubai discussed shifting hotel growth focus to profitability. (bizcommunity.com)
  • Tim Cordon said the industry needs to accelerate its evolution, not reinvent itself. (bizcommunity.com)
  • Amir Golbarg highlighted Minor Hotels' Anantara 2.0 focus on sustainable luxury and intangible experiences. (bizcommunity.com)
  • Eddy Tannous stressed the continued need for personalised service despite AI booking tools. (bizcommunity.com)

Sources

  • [1] bizcommunity.com — originally reported as “Middle East hotel boom shifts focus from rooms to profitability”

Earlier coverage

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