Dubai’s hospitality sector has seen significant growth in 2024, with more than 2,700 new hotel rooms delivered in the first half of the year. According to research by Cavendish Maxwell, a leading real estate advisory group, an additional 10,100 rooms are set to enter the market by the end of 2025.
Between January and June 2024, Dubai added 12 new hotels, increasing the total number of establishments to 716, with nearly 149,750 rooms. The report predicts 40 more hotels will be delivered by the end of next year, contributing further to Dubai’s expanding hospitality inventory. Beyond 2025, another 4,748 rooms are expected to come online between 2026 and 2027.
The four-star hotel segment witnessed the highest growth during the first half of the year, with 436 new rooms delivered—an impressive 216% increase compared to the same period in 2023. Additionally, the five-star category saw a surge with 1,681 rooms added, a 111% rise from last year.
High-end accommodation remains the dominant sector in Dubai, with 67% of the city’s hotel inventory categorized as luxury, upper upscale, or upscale as of June 2024. New luxury hotel openings this year include The Lana Dubai Dorchester Collection, SIRO One Za’abeel, One & Only Za’abeel, and FIVE Lux JBR, among others. Further luxury establishments, such as Ciel Dubai Marina and Viceroy Dubai Business Bay, are slated to open later this year.
Occupancy levels in Dubai remained strong in 2024, reaching 78% in the first half of the year, surpassing pre-COVID levels. The luxury and upper mid-scale segments showed the highest occupancy gains, with increases of 2% and 1.6%, respectively. Elsewhere in the UAE, Abu Dhabi City hotels reached 83% occupancy, while resorts in Abu Dhabi, Fujairah, and Ras Al Khaimah maintained occupancy levels between 72% and 76%.
Dubai’s average daily rate (ADR) for hotel rooms hit Dh720, the highest in six years, marking a 4.6% rise from the previous year. Upper and upper mid-scale hotels saw the biggest ADR increases, with gains of 10% and 7%, respectively.
Western Europe accounted for 20% of Dubai’s 9.31 million visitors in the first half of 2024, followed by South Asia (17%), Eastern Europe (15%), and GCC tourists (14%).
Cavendish Maxwell’s hospitality expert, Gergely Balint, noted that Dubai’s hospitality sector remains a cornerstone of the emirate’s economic diversification and is set to grow further with 15,000 new rooms expected by 2027.
