MIDDLE EAST – While a limited number of inbound and outbound flights are starting to move in the Middle East and GCC states, travel and tourism to the region continues to suffer as a result of the conflict in Iran.
Dubai-based HVS President for the Middle East and Africa Hala Matar Choufany told Hotel Investment Today that it would be reasonable to expect a 15% to 20% compression in accommodated room nights by year-end across key GCC cities, particularly if the current conflict persists through 2Q26.
“The timing is critical; March and April typically represent peak trading months for the region, driven by leisure demand, religious travel, and strong corporate activity,” Choufany said.
As Iran has been lobbing missiles into neighboring UAE states, Qatar and Saudi Arabia to create further instability in the region, Bloomberg reported on Tuesday that the United Arab Emirates and Qatar are privately lobbying allies to help them persuade U.S. President Donald Trump to end the conflict and avoid a more significant spike in energy prices. Higher oil prices will likely have a knock-on effect on global tourism.
Ryan Holdings Plc CEO Michael O’Leary predicted at a press conference in Poland that tourism flows to the Persian Gulf will suffer in the next year or two as a result of the Iran war, though he said demand will bounce back eventually because regional governments will lure travelers with discounts.
Bloomberg reported O’Leary said any prediction on the longer-term impact depends on how long the war will go on. For his part, he believes the war will be over quickly.
On the tourism front, tour operators have paused some Middle East itineraries. Collette will cancel all departures for one itinerary and two extensions through March 21, said a company spokeswoman. The affected itineraries are the company’s Dubai extension, Jordan extension and Journey Through Egypt & Jordan tour.
Tauck posted a travel update on its website that said it had canceled the March 2 departure date for its Jordan and Egypt: Petra to the Pyramids itinerary due to uncertainty in the region and current flight disruptions.
On Tuesday, March 3, Dubai International Airport had resumed “a small number of flights.” Emirates is operating a limited number of passenger repatriation flights, while all other services to and from Dubai remain suspended until 23:59 local time on March 4. Etihad Airways flights to and from Abu Dhabi remain suspended until 14:00 local time on March 5. Qatar Airways flight operations also remain temporarily suspended.
Thousands of travelers remain stranded at airports across the Gulf region after joint U.S. and Israel military strikes on Iran over the weekend led to mass airline cancellations for the Middle East region.
The rebound was supported by sustained growth in leisure and wellness demand, according to a Knight Frank report. But expectations are muted for 2026.
https://www.hotelinvestmenttoday.com/Regions/EMEA/UK-hotels-staged-second-half-comeback-in-2025?
INTERNATIONAL REPORT — Despite early-year volatility, the U.K. hotel sector rebounded in the second half of 2025, reversing GOPPAR declines with improved ADR and softening inflation, according to a report by Knight Frank. As a result, full-year 2025 RevPAR matched or exceeded prior levels across London and regional markets.
Heading into 2026, rising business rates, labor costs and regulatory pressures threaten margins, tempering the pace of growth despite cautious optimism.
The report said the biggest challenge will be protecting the net operating profit, as the strong rise in business rates is expected to erode margins across all segments of the U.K. hotel market.
London hotels were resilient in 2025, with occupancy rising 1.2 points to 82.5%, offsetting a 2.5% ADR decline in the first half before a 2% second-half rebound left rates broadly flat year-on-year. RevPAR increased 1.5% for the year, including 4.4% growth in the second half.
Regional U.K. mirrored the two-speed recovery: after a 0.4% first-half RevPAR dip, second-half occupancy rose to 79% and ADR was up 2.2%, driving 3.8% RevPAR growth. Full-year regional RevPAR climbed 1.9% to £79. Ancillary revenues also increased, with F&B gains contributing to 2% TRevPAR growth.
U.K. hotels capitalized on wellness demand in 2025, driving 7.3% growth in leisure revenue and 39% gains since 2019, while car-parking revenues surged 32%, boosting ancillary performance. Hotels in the U.K. proved resilient in 2025. While London GOPPAR slipped 0.5% to £111.60, regional profits held at £37, though the GOP margin fell to 30.3%.
Regional upscale hotels led U.K. performance in 2025, delivering 3.4% GOPPAR growth and reversing a 4.8% first-half shortfall through overhead discipline despite payroll pressures. Golf and spa properties posted the strongest TRevPAR increase, up 4.2%, though 6.6% payroll inflation tempered profitability; second-half efficiencies drove 2.8% GOPPAR growth.
The biggest declines in GOPPAR were suffered by London’s luxury hotels and regional serviced apartments. London’s luxury hotels achieved TRevPAR growth of 2% YOY, but this cushion wasn’t enough to withstand rising costs, leading to a 4% decline in GOPPAR. Regional serviced apartments saw a 3.6% decline in RevPAR, driven by a sharp drop in GOPPAR.
Madrid real estate investment trust values the deal at €300 million
https://www.costar.com/article/1143423158/azora-sells-75-stake-in-three-mediterranean-hotels?
Madrid-based real estate investment trust Azora has sold a 75% stake in three hotels to partner Grupo Empresas Matutes.
The deal is valued at €300 million, according to a news release from Azora. It is a culmination of a joint venture that was founded in 2019 to acquire, renovate and reposition the hotels. Two of the hotels are in Ibiza, one is in Sicily.
Azora’s ownership of the properties was via its now-closed fund, European Hotel & Lodging, F.C.R. It said the move is a divestment under attractive conditions.
Palladium Hotel Group will continue to manage the hotels — the 151-room Bless Hotel Ibiza; 376-room TRS Ibiza Hotel, and 469-room Grand Palladium Sicilia Resort & Spa. According to CoStar, Azora and Grupo Empresas Matutes acquired the hotels in 2019 for approximately $144 million.
Ibiza-based Grupo Empresas Matutes is now in full ownership of the hotels. Abel Matutes, vice chairman, said Grupo Empresas Matutes remains “committed to creating value in these unique destinations, strengthening their positioning and continuous evolution under the highest standards of excellence, always under the management of Palladium Hotel Group.
Here’s Why You Should Visit Minneapolis Right Now
Josh Hild/Unsplash
https://www.fodors.com/world/north-america/usa/minnesota/minneapolis-st-paul/experiences/news/why-travelers-should-visit-minneapolis-and-support-local-businesses-now
Minnesota’s largest city is making national headlines for mass protests and demonstrations against U.S. Immigration and Customs Enforcement (ICE)’s recent acts of violence (dubbed Operation Metro Surge) in their community that target immigrants. Does that mean you should skip a visit?
Absolutely not.
Now is exactly when the city’s immigrant-owned restaurants and indie-owned boutiques and hotels need travelers’ support. In fact, many chefs and small-business owners are speaking out in solidarity with protesters by hosting fundraisers and benefits to support not only the families of victims (Renee Good and Alex Pretti) shot dead by ICE, but also immigrant families affected by the operation. These efforts are so unwavering that
The Nation nominated Minneapolis and its people for the Nobel Peace Prize.
Last Friday, First Avenue—a 1930s-era Greyhound bus depot that was the late Prince’s regular club venue—
hosted an all-ages, daytime fundraiser concert “of solidarity and resistance to defend Minnesota” that
included Bruce Springsteen. The work continues, with more fundraisers announced
here, including Lynette’s
Mutual Aid Community Fundraiser on Feb. 9, with screen printing, speakers, burgers, a DJ, dancing, and activities for all ages. All proceeds will benefit people directly affected by the occupation.
With a population of 428,579, Minneapolis is a city of neighborhoods that are home to refugees and immigrants who sought out this Upper Midwest city as a new place to call home. Many of those enclaves are deeply tied to ethnic groups, creating dining and cultural opportunities for visitors. They rely upon not just locals, but also travelers eager to explore beyond downtown.
Meet Minneapolis recently surveyed its 500 association partners—such as restaurants, hotels, retail shops, service providers, and arts and event organizers—about the business impact of current federal activity in the area. Ninety percent of respondents report being impacted, and 80% of those people have directly experienced canceled, postponed or reduced bookings/sales. But that’s not all. Ninety percent said fear or stress was affecting operations, with 73% reporting staffing absenteeism.
In light of all of this, Meet Minneapolis recently launched a campaign called
MPLS for MPLS to funnel support to local-owned businesses where it’s needed most, even during these unprecedented times. When a city’s experiencing unrest, residual effects like increased traffic congestion and workers fearing ICE round-ups lead to limited hours and short staffing. Yet owners of these businesses still need to earn a living. They can’t just shut down, press pause, and wait for the federal operation to decamp.
Not only are they keeping their doors open, but they’re also doing so with a new purpose: many are donating proceeds to anti-ICE efforts or being very vocal in resisting ICE in their community. A list of immigrant-owned restaurants and those supporting the fight to keep ICE out of the community is published
here, such as
Milkjam Creamery and Worldstreet Kitchen (both are owned by Pakestani chef Sameh Wadi),
Tacos El Kevin,
Bichota Coffee (located in
George Floyd Square, an area commemorating Floyd, who was murdered by a police officer here in May of 2020),
Midtown Global Market (featuring food stalls operated by people representing various ethnic groups), and
La Dona Cerveceria (a Latino-owned brewery).
In addition to consulting this list before booking a table or ordering take-out, if you’re curious which ones are in solidarity with the anti-ICE movement,
The Solidarity List is a good place to start. These restaurants, bars and coffee shops have spoken out by publicly posting statements that include “all are welcome except ICE.” They also function as safe gathering spaces to talk with others about the civil unrest and how to ensure the safety of the city’s immigrants. As of February 2, there are 95 businesses on the list, including a few like Bymore Supermercado,
Colonial Market and Restaurant, LomaBonita and
Valerie’s Carniceria that provide free food delivery for those impacted by ICE. During the immigrant crackdown, Wrecktangle Pizza rolled out a match challenge: for every pizza sold, they’d provide a frozen pizza free to a vulnerable person sheltering at home.
They sold 2,220 pizzas.
Even if you can’t physically drop by these businesses, because you’re not planning a trip to Minneapolis right now, you can still help by ordering their food or products online, or purchasing gift cards for a future visit. Each purchase adds up and fuels their fight to provide a safe place in Minneapolis and continue to speak out against ICE.
It’s also important to remember not all immigrant-owned businesses feel comfortable speaking out. When in doubt about which businesses to support, opt for one with an immigrant at the helm.
For up-to-date info on what’s happening in Minneapolis,
Meet Minneapolis’s FAQ page highlights community safety issues, such as where ICE agents are currently located and where protests and rallies are happening.
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