A Market Reopening
Several international hotel companies are actively pursuing projects in Syria, wagering that the country's archaeological wealth and Mediterranean coastline can draw visitors after years of conflict. Tourist arrivals more than doubled year-on-year in the first half of 2026 to 3.52 million, according to government data, a figure that has caught the attention of operators from the Gulf and Europe.
The visitor mix tells a particular story. Of the 3.52 million arrivals, 2.13 million were Syrian expatriates, around 660,000 came from Arab countries, and approximately 720,000 arrived from elsewhere. That expatriate segment represents a significant share, driven by diaspora communities who left during the civil war and are now returning to visit family or assess conditions.
International flights resumed last year, with Gulf carriers including Qatar Airways and flydubai adding routes. Etihad Airways announced it would increase its Damascus service from four to seven flights weekly, signalling carrier confidence in demand. The connectivity improvements are making Syria more accessible from regional hubs, though long-haul routes remain limited.
Who Is Committing
UAE-based Eagle Hills signed a framework agreement for two large-scale developments: a 10 million square metre project in Damascus and a 4.3 million square metre site in coastal Latakia. Financial details were not disclosed. Mohamed Alabbar, the firm's founder and chairman, noted that Emaar, the Dubai developer he also chairs, could participate in both projects, which he described as worth billions of dollars combined. Emaar is separately working on another Damascus development.
Another UAE firm, Arada, has announced plans for a $7 billion project in the country, though specifics on location and timeline have not been made public.
On the international hotel side, Accor is in advanced negotiations for two properties, according to Duncan O'Rourke, the company's chief executive for the Middle East, Africa, and Asia-Pacific. Wyndham Hotels & Resorts is scouting sites in Damascus and beach destinations, with Dimitris Manikis, the group's president for Europe, the Middle East, and Africa, expressing confidence that a signing would be announced soon.
Minor Hotels is exploring both adaptive reuse of historic buildings in old Damascus for boutique hotels and new-build projects. Amir Golbarg, the company's chief operating officer for the Middle East and Africa, highlighted the country's historical significance and location as major draws.
What Stands in the Way
The optimism comes with caveats. Syria's civil war, which formally ended nearly two years ago, left cities and archaeological sites damaged. Violence still occurs intermittently, and the US State Department continues to advise its citizens not to travel there, even after the country was removed from the US list of state sponsors of terrorism in August.
Infrastructure poses a practical barrier. The World Bank estimated last year that reconstruction costs in Syria stand at $216 billion, including $75 billion for residential buildings and $59 billion for non-residential structures. The hotel stock is outdated. Golbarg described the existing inventory as "very tired" after being off the international market for years.
Electronic payments are another friction point. Visa and Mastercard announced last month that they were launching operations in Syria, but card acceptance remains limited to certain foreign-issued cards at select locations. For an industry that increasingly relies on seamless transactions, the payment infrastructure gap is a tangible problem.
A handful of traditional homes in Damascus have operated as small boutique hotels for decades, but the scale of new projects proposed by the government has drawn pushback from some local communities in suburban areas, raising questions about how development will be managed.
The Bet on History and Diaspora
Hotel executives are making two wagers. The first is on Syria's historical assets. Damascus is often cited as one of the world's oldest continuously inhabited cities, and the country's Roman, Byzantine, and Islamic sites have long been on archaeological itineraries. The second bet is on the Syrian diaspora, a population estimated in the millions who may travel for family visits, property management, or simply to see how conditions have changed.
Those two segments alone may not sustain large-scale hotel investment, which is why operators are also counting on regional Arab tourists and, eventually, a broader international market. Whether that materialises depends on security trends, visa policies, and how quickly infrastructure can be restored.
The hotel industry is entering a market with genuine tourism potential but also with risks that are difficult to quantify. The speed at which operators are moving suggests they see a window, though the timeline for returns is likely measured in years, not quarters.
For now, the focus is on signing deals and securing sites. The real test will be whether tourists beyond the diaspora arrive in the numbers needed to justify the investment.
