Abu Dhabi’s hospitality sector is bracing for one of its busiest weeks of the year as the Formula 1 weekend approaches, with occupancy already above 80% across the city. Yas Island hotels typically sell out during the event, and this year’s gathering is expected to coincide with other major events, including golf tournaments and concerts, further straining the city’s hotel supply.
Hotel pricing between December 3 and 8 is expected to show significant spikes, particularly on and around Yas Island. Listings from major booking platforms indicate that Yas Island hotels will start at Dh19,000 and climb to Dh32,000 for the period, while apartments and holiday homes will range from Dh16,000 to as high as Dh48,000.
Yas Island Hotels See Sharp Price Increases
The areas closest to the circuit are absorbing the strongest increases, according to Zacky Sajjad, Director of Business Development and Client Relations at Cavendish Maxwell. “The biggest spikes are on Yas Island, trackside and walking distance hotels, with strong increases in nearby clusters, including those on Saadiyat Island,” he said.
Mainland hotels, business district, and airport hotels are expected to present the best value within a 15 to 45-minute radius of the F1 track. The Ambassador Suite at Hilton Abu Dhabi Yas Island is listed at Dh172,487 before taxes for the period, making it one of the costliest race-week stays.
Five-Star Stays Outside Yas Island Also Rise
Beyond Yas Island, five-star hotels across Abu Dhabi are showing wide variations in pricing. Jumeirah Saadiyat Island is listed at about Dh87,100 before taxes, while Conrad Abu Dhabi Etihad Towers stands at Dh65,375. In contrast, Bab Al Qasr is priced at Dh14,200, and The WB Abu Dhabi is listed at Dh18,180 before charges.
Four-star options range from Dh6,930 at City Seasons Al Hamra to Dh17,000 at Mercure Abu Dhabi Downtown. Three-star stays fall between Dh4,000 and Dh10,000, with Premier Inn Capital Centre at Dh9,192. Serviced apartments in Abu Dhabi range from Dh800 to Dh1,700 per night.
Dubai Remains a Lower-Cost Base for Formula 1
Dubai is trending more moderately in terms of hotel rates for the December F1 weekend. According to Sajjad, “Hotel rates for the December F1 weekend are trending strongly upwards in both Dubai and Abu Dhabi, but noticeably more for the hotels closest to the circuit.” Some ultra-luxury stays are priced in the tens of thousands of US dollars for a few nights in the most prime locations.
For Dubai, the uplift is more moderate, offering a reasonable alternative, especially for bookings with multiple rooms. Five-star Dubai hotels are listed between Dh400 and Dh900 per night, while serviced apartments range from Dh200 to Dh500, and three-star hotels from Dh200 to Dh1,000.
How Fans Can Reduce Accommodation Costs
Travellers planning to stay in Dubai and commute to Abu Dhabi will still face elevated December prices, as the month is historically the most expensive for Dubai’s hotels. However, Dubai’s wider supply gives more flexibility. Early booking remains the strongest cost-saving strategy, as rates rise sharply after the end of Q3.
Corporate block bookings made in Q1 or early Q2 can be up to 40% cheaper than those secured in September. Short-term rentals and serviced apartments can help, but these too carry December premiums. Holiday homes in both cities peak during the event period, meaning alternatives do not always translate into bargains.
Sajjad suggests that travellers looking for value without losing access to Yas Island should focus on mainland Abu Dhabi, the central business district, or the airport area. Dubai is also a practical base for those willing to commute. Other cost-saving tactics include serviced apartments, split stays, and early reservations.
Some hotels are offering packages that bundle accommodation with race access or transfers. These packages can justify higher nightly rates by adding value typically sought by international visitors. Demand is being driven by more than just Formula 1, with strong seasonal tourism, a busy MICE calendar, large corporate events, and additional sporting tournaments contributing to the pressure on hotel supply.
As the Formula 1 weekend approaches, the hospitality sector in Abu Dhabi is expected to remain under significant pressure. With occupancy already high and prices continuing to rise, travellers are advised to book early to secure the best rates. The market is expected to remain dynamic, with further changes in pricing and availability likely in the coming weeks.
