Key facts
- Global and regional hotel groups are exploring entry or expansion in Syria.
- Syria's civil war ended nearly two years ago, but challenges like bouts of violence remain.
- The US removed Syria from its list of state sponsors of terrorism in August.
- Tourist numbers in Syria more than doubled in the first half of 2026 to 3.52 million.
- Eagle Hills plans a 10 million square meter development in Damascus and a 4.3 million square meter project in Latakia.
- Arada plans a $7 billion project in Syria.
Several global and regional hotel groups are exploring opportunities in Syria, drawn by its historical significance and coastal destinations, as the country seeks to rebuild after years of civil war. Executives from companies like UAE-based Eagle Hills and France's Accor are examining potential projects, viewing Syria as a destination with "major potential" for both overseas tourists and expatriate Syrians.
Despite the end of the devastating civil war, Syria still faces challenges, including sporadic violence and a need for significant infrastructure upgrades. The US removed Syria from its list of state sponsors of terrorism in August, a move intended to deter investors, though the State Department still advises US citizens against travel.
International flights and tourism have seen a resurgence, with Syrian state news agency SANA reporting that tourist numbers more than doubled in the first half of 2026 to 3.52 million. Of these, 2.13 million were Syrian expatriates, with hundreds of thousands more from Arab countries and other nations.
Mohamed Alabbar, chairman of Eagle Hills, expressed confidence in Damascus as the "oldest city in the world" and highlighted the desire of many expatriate Syrians to return. Eagle Hills has signed a framework deal for two large-scale developments in Damascus and coastal Latakia, with Emaar potentially participating. UAE developer Arada has also announced plans for a $7 billion project.
Western hotel groups are also actively assessing the market, facilitated by increased flight connectivity from Gulf hubs. Etihad Airways is set to increase its flights to Damascus to daily, and Accor is in advanced negotiations for two projects. Wyndham Hotels & Resorts is also scouting locations, with Minor Hotels seeing potential in converting existing buildings in Old Damascus or building new properties.
However, significant hurdles remain. Electronic payment systems are limited, and the country's infrastructure, including its hotel inventory, is described as "very tired." The World Bank estimated reconstruction costs at $216 billion, with substantial portions allocated to residential and non-residential structures. Some local communities have also protested against large government-announced development projects.