Accor's UAE city hotels cut rates 15–20 per cent while Gulf resort rates run ahead

What happened

Accor's Gulf hotel recovery is running at two speeds. UAE city hotels cut room rates by 15 to 20 per cent in August and September to keep occupancy within 5 per cent of target, according to a Skift report published on 9 October 2026. Rates at Gulf resorts, by contrast, are ahead.

The account comes from Duncan O'Rourke, Accor's chief executive for its premium, midscale and economy brands across the Middle East, Africa and Asia Pacific. He told Skift that the city hotels are where Accor is down, and that this applies only in the UAE.

Skift also reported that Jeddah and Riyadh are slightly behind last year because corporate business is weaker, while the Holy Cities are ahead. That sits awkwardly with the claim that weakness is confined to the UAE. Skift added that Egypt and Abu Dhabi are performing well and Jordan is recovering more slowly.

Skift reported that food and beverage spending and length of stay have both increased. O'Rourke said large conventions were deferred, not cancelled.

Accor's half-year results show the scale of the earlier hit. According to HOTELSMag on 30 July 2026, Accor reported group RevPAR (revenue per available room) up 2.2 per cent year on year in the first half of 2026. It said the figure would have risen 4.6 per cent excluding the Middle East.

UAE activity was down nearly 80 per cent in April and around 40 per cent in June. The conflict began in late February 2026, and the UAE was the market most affected.

Accor expects the UAE to return to pre-war levels by late in the first quarter or early in the second quarter of 2027, Skift reported. Its full-year 2026 RevPAR growth guidance, as reported by HOTELSMag on 30 July 2026, is 2 to 2.5 per cent.

Accor has 380 hotels and more than 101,000 keys (rooms) across the Middle East, Africa and Turkey, with a pipeline of more than 190 hotels and 44,000 keys, Skift said. Skift also reported recent signings in Saudi Arabia, Egypt, Nigeria and Dubai, and said signings have not slowed.