Dubai Took a Hit — IHG Is Betting on Egypt, Saudi, and a Q4 Recovery

IHG Hotels & Resorts has recorded a short-term softening in Middle East demand tied to the Iran war but says its forward booking pace for the final quarter of 2026 is recovering, driven by domestic GCC travelers and Indian visitors. 

“We’re seeing short-term softness in demand,” said Haitham Mattar, managing director for India, Middle East and Africa at IHG Hotels & Resorts. “The future looks good in terms of booking pace. The Dubai government announced that they will see a recovery in September based on airline capacity and their marketing efforts, and we’re seeing that reflected in our booking pace, which is ramping up nicely for the last quarter of the year.”

IHG operates 39 hotels in the UAE, 48 in Saudi Arabia, and 10 in Egypt. The group is expected to open about 27 hotels across the MENA region through 2027. 

“The international conferences are not back yet, but there’s a number of small to medium regional meetings taking p