Dubai’s hospitality sector continues to grow rapidly, with more than 2,700 new hotel rooms added in the first half of 2024. According to a report by Cavendish Maxwell, another 10,100 rooms are expected to enter the market by the end of 2025, with 12 new hotels opening in the first six months of the year. The total number of hospitality establishments in Dubai now stands at 716, with almost 149,750 rooms available.
The report shows significant growth in the four-star and five-star hotel categories, with a 216% increase in four-star rooms and a 111% increase in five-star rooms compared to 2023. High-end accommodation continues to dominate Dubai’s hospitality offerings, with 67% falling under the luxury, upper upscale, or upscale classification. The report also highlights the surge in luxury hotel openings, with over 75% of new supply in the luxury and upper upscale categories.
Occupancy levels in Dubai have surpassed pre-Covid levels, reaching 78% in the first half of the year. The luxury and upper mid-scale segments saw the highest gains, with a two percent and 1.6% increase, respectively. In other parts of the UAE, occupancy levels are also on the rise, with Abu Dhabi City hotels reaching 83% and surpassing pre-pandemic levels. The Average Daily Rate (ADR) in Dubai is at its highest in six years, standing at around Dh720 in H1 2024.
Western Europe was the biggest source market for Dubai visitors in H1 2024, accounting for 20% of the 9.31 million visitors. South Asia, Eastern Europe, GCC, and MENA regions also contributed significantly to Dubai’s tourism numbers. Gergely Balint, an expert at Cavendish Maxwell, attributes Dubai’s hospitality sector’s success to the emirate’s robust economy, growing infrastructure investment, and focus on experience-based tourism. With around 15,000 new rooms set to be delivered by 2027, Dubai’s hospitality sector shows no signs of slowing down.
To sustain the momentum, the industry will need to prioritize innovation, sustainability, and unique experiences. Adapting to evolving trends and leveraging emerging opportunities will help Dubai maintain its position as a top global tourism destination. With the city’s goal of becoming one of the top three global tourism destinations by 2033, continued growth and development in the hospitality sector are crucial for Dubai’s economic diversification and global reputation.
