More than 50 senior hospitality leaders convened in Dubai for the annual FHS World Advisory Board meeting to define the programme for FHS World 2026, scheduled from 29 September to 1 October at Madinat Jumeirah in Dubai.
As the hospitality industry accelerates toward a more institutionalised, technology-driven and investor-focused landscape, the Advisory Board identified four key market dynamics expected to shape 2026 and beyond.
The first insight focused on hotel performance in the Middle East. Data presented by STR indicated that the region currently records the highest average room rate globally at USD 183, reflecting a 6% year-on-year increase. Abu Dhabi and Dubai reported occupancy levels of 81%, positioning them among the strongest global performers alongside Tokyo and New York. Across the GCC, demand continues to outpace supply, with luxury remaining the primary demand driver, recording a 10% year-on-year increase. RevPAR growth in the GCC reached 10.1% in 2025. Globally, demand for hotel rooms remains strong, with the Eastern hemisphere leading growth and occupancy continuing to rise, supporting further ADR increases.
The second insight highlighted a structural shift in the investor landscape. The industry is transitioning from traditional family-run ownership models toward institutional investors, including pension and sovereign wealth funds. These investors apply frameworks centred on risk matrices, exit strategies and dividend policies. The Advisory Board emphasised the need for clearer asset class definitions and enhanced transparency in asset life cycle reporting to maintain capital attractiveness.
The third insight addressed the evolution of wellness and longevity as a standalone asset class. Discussions noted that wellness has moved beyond being a supplementary hotel amenity and is increasingly viewed as a core investment pillar. The Board underscored that wellness initiatives must demonstrate financial viability independently rather than operate as ancillary offerings. With younger travellers prioritising lifestyle-driven experiences, investment focus is expected to centre on foundational elements such as sleep optimisation and longevity-oriented design.
The fourth insight examined the technology trust gap within hospitality. Technology expenditure is at record levels, with AI integration reaching 78% across the sector this year and projected to increase to 89% next year. Despite this growth, a trust gap persists between technical teams and hotel owners. The Board identified the need to demonstrate measurable ROI and value creation from AI deployment. There is increasing emphasis on technology as an enabler of human interaction, automating back-of-house processes and distribution to allow staff to prioritise guest-facing roles. Future debate is expected to focus on data ownership and control among brands, owners and technology providers.
The 2026 Advisory Board meeting and networking reception were hosted by RIKAS Hospitality Group at Tagomago, The Palm Jumeirah in Dubai. Organiser The Bench also announced the launch of FHS Egypt, expanding the portfolio into North Africa. The new event will take place on 10–11 November 2026 at the Sofitel Downtown Cairo Nile, focusing on Egypt’s tourism pipeline and investor engagement.
Vicky Karantzavelou
