Dubai’s hospitality sector is witnessing remarkable growth, with an estimated 11 300 new hotel rooms expected to enter the market by 2027. In 2024 alone, the city anticipates the opening of 4 620 new rooms, reinforcing its status as a global destination for high-net-worth individuals (HNWIs) and leisure travelers.

According to property consultancy Cavendish Maxwell, Dubai has already added 4 255 rooms across 19 hotels this year, which translates to an annual growth of nearly 3 percent. By the end of 2024, the city’s hotel industry is projected to have 724 properties and a total of 151 245 rooms. The expansion trend is expected to continue, with forecasts indicating a 3.1 percent increase in 2025 and a 3.4 percent rise in 2026, leading to over 162 600 rooms across 769 hotels by 2027.

The luxury segment is at the forefront of Dubai’s hospitality market. In 2024, approximately 70 percent of hotel rooms fell within the Luxury, Upper Upscale, and Upscale categories. This pattern is expected to persist in 2025, with most of the new supply categorized as Luxury and Upper Upscale accommodations.

Tourism has been a key driver behind the expansion of Dubai’s hotel sector. The city witnessed a 9.1 percent rise in overnight visitors in 2024, bringing in over 17.15 million tourists. Recognizing its appeal, the global travel community awarded Dubai the title of ‘World’s Leading Shopping and Exhibition Destination’ at the 31st Annual World Travel Awards in 2024. Additionally, Mina Rashid was named the world’s top cruise port, while Dubai International Airport continued to hold the title of the world’s leading airport.

The hotel occupancy rate in Dubai reached 78 percent in 2024, which is a 1 percent increase compared to 2023. The Luxury and Upper Midscale segments experienced the most significant gains, with occupancy levels rising by 3 percent and 2.4 percent, respectively. The average daily rate (ADR) for hotels in Dubai reached Dh690, marking a 0.2 percent year-on-year increase, indicating stable pricing in the market. Revenue Per Available Room (RevPAR) increased by 1.3 percent, largely driven by higher occupancy rates, with the Upper Midscale segment leading this growth at 1.9 percent.

In contrast, neighboring Ras Al Khaimah (RAK) experienced mixed results. The region saw a slight decline in occupancy rates due to an influx of new hotels, such as the Anantara Mina Al Arab Resort and Sofitel Al Hamra Beach Resort. Nevertheless, RAK welcomed 1.28 million visitors in 2024, reflecting a 5 percent increase from the previous year.

With a steady influx of tourists, consistent occupancy levels, and ongoing investments in high-end hospitality, Dubai’s hotel industry is anticipated to continue its growth in the coming years. The emirate’s ability to attract both leisure and business travelers, along with its world-class infrastructure, ensures it remains a leading global tourism destination.