Accor reports Middle East occupancy recovery led by CIS and India

Accor has reported a recovery in Middle East hotel occupancy driven by demand from CIS markets including Russia, India and the GCC, with the company's chief executive stating that room rate recovery is expected to follow the occupancy gains.

CIS and Indian demand drives occupancy#

The hotel operator attributed the Middle East occupancy recovery to three source markets: CIS countries including Russia, India, and GCC travellers. The company's chief executive stated that demand from these markets is supporting hotel performance across the region. Accor operates hotels under brands including Sofitel, Pullman, Novotel and Ibis across Middle East destinations. The occupancy recovery marks a shift from earlier periods when regional hotel performance remained below pre-pandemic levels in some markets.

Rate recovery expected to lag occupancy gains#

Accor's chief executive said room rate recovery is expected to follow the occupancy improvements, indicating that pricing power has not yet returned to the same extent as demand. The company did not disclose specific occupancy or rate figures for the Middle East region. Hotel operators typically see occupancy recover before average daily rates in a demand recovery cycle, as properties prioritise filling rooms before raising prices. The timing of rate recovery will depend on sustained demand growth and capacity constraints in individual markets.

GCC markets contribute to regional demand#

GCC travellers are among the three source markets supporting Middle East hotel demand, alongside CIS and Indian visitors. The company did not break out the relative contribution of each source market to total occupancy. Regional travel within the GCC has grown as a component of Middle East hotel demand in recent years, supported by visa facilitation measures and increased air connectivity between Gulf capitals. Accor operates properties across GCC destinations including the UAE, Saudi Arabia, Qatar and Oman.

Operator outlook on pricing power#

The chief executive's statement that rate recovery is expected to follow occupancy indicates that Accor has not yet seen pricing power return to Middle East markets at the same pace as demand. Hotel operators monitor the relationship between occupancy and average daily rate as an indicator of market strength, with rate growth typically lagging occupancy gains in the early stages of a recovery. The company did not provide a timeline for when it expects rate recovery to materialise or specify which Middle East markets are seeing the strongest occupancy performance.