The UAE’s hotel industry is entering a new phase, marked by strong performance and a shift in investor strategy. Hotel revenues jumped nearly 12% this year as investors increasingly moved away from new builds to focus on acquisitions and asset upgrades, reflecting a more mature and stable market.
Across the Emirates, key performance indicators tell a story of resilience and rising demand. Revenue per available room and daily rates rose by almost 12%, while occupancy levels climbed to 78.5%.
Dubai continues to lead the way, accounting for more than half of all upcoming hotel rooms in the country. The city saw its room revenues grow by just over 10% this year, supported by a steady flow of international visitors more than 11 million in the first seven months alone. With its strong tourism base, global connectivity, and expanding calendar of international events, Dubai remains the centrepiece of the UAE’s hospitality landscape.
The country’s hotel supply now stands at around 214,000 rooms and is expected to grow to over 235,000 by the end of the decade. Nearly half of this new supply will come from the luxury segment, highlighting the UAE’s focus on maintaining its global reputation for high-end hospitality.
At the same time, destinations like Abu Dhabi, Sharjah, and Ras Al Khaimah are stepping into the spotlight. Each is developing its own niche within the market, from leisure-led growth to sustainable tourism and cultural experiences. This diversification is broadening the UAE’s appeal and attracting a wider base of regional and international investors.
The road ahead
As the market shifts from fast expansion to an investment-driven phase, confidence in the UAE’s hospitality industry remains strong. With steady growth, strategic planning, and a global reputation for excellence, the country continues to offer one of the most secure and attractive environments for long-term hotel investment.
In a market driven by rapid growth and long-term potential, we remain focused on helping investors identify future-ready assets that offer strong capital appreciation, ensuring they make confident and informed investment decisions.
