Dubai to add over 11,300 hotel rooms by 2027; nearly 4,620 expected in 2025
According to a report by leading real estate advisory group, Cavendish Maxwell, in 2024, the emirate added 4,255 rooms across 19 new hotels, marking a 2.9 per cent increase in its hospitality sector
Dubai is set to increase its hotel inventory by more than 11,300 rooms by 2027, with nearly 4,620 rooms slated to open this year, according to a report by leading real estate advisory group, Cavendish Maxwell.
In 2024, the emirate added 4,255 rooms across 19 new hotels, marking a 2.9 per cent increase in its hospitality sector.
By December 2024, Dubai had a total of 724 hotels, offering 151,245 keys.
The city’s hotel inventory is expected to grow by 3.1 per cent in 2025, with a further 3.4 per cent growth predicted for 2026.
By the end of 2027, Dubai will boast more than 162,600 hotel rooms spread across 769 properties.
High-end accommodation dominates Dubai’s hotel landscape
Dubai’s luxury segment continues to dominate the market, with nearly 70 per cent of the available rooms in 2024 falling under the high-end categories of luxury, upper upscale, and upscale.
For 2025, this trend is set to continue, with nearly 70 per cent of new hotel rooms falling into the Luxury and Upper Upscale segments, according to the research.
Gergely Balint, associate partner and hospitality expert at Cavendish Maxwell, commented, “Dubai’s hospitality and tourism sectors reached new milestones in 2024, with 18.72 million overnight visitors. The city added 4,255 new hotel rooms, and we anticipate another 20 hotels and resorts to open in 2025. This reinforces Dubai’s position as a global leader in tourism and hospitality, aligned with the strategic goals of the Dubai Economic Agenda, D33, which aims to position Dubai among the world’s top three tourism destinations.”
Tourism growth and economic impact
Tourism played a significant role in the UAE’s economy in 2024, contributing Dhs236bn, or 12 per cent of the nation’s GDP, up from Dhs220bn in 2023.
The total number of overnight visitors to Dubai grew by 9.1 per cent in 2024, reaching a record-breaking 18.72 million, up from 17.15 million the previous year.
Dubai also garnered international recognition, receiving several prestigious awards at the 31st Annual World Travel Awards, including titles for the world’s leading shopping and exhibition destination, and Dubai International Airport as the world’s leading airport.
Hotel rooms, occupancy metrics
Dubai’s hotel occupancy rates remained steady, rising to 78 per cent in 2024, an increase of 1 per cent from the previous year. The luxury and upper mid-scale segments saw the biggest gains in occupancy, with increases of 3 per cent and 2.4 per cent, respectively.
Average daily rates (ADR) in Dubai reached Dhs690, marking a slight increase of 0.2 per cent from 2023, signaling stability in pricing within the hospitality market. While the Luxury segment saw a decrease in ADR by 1.9 per cent, occupancy within this category increased by 3 per cent, suggesting a rise in demand despite a slight dip in pricing.
Revenue per available room (RevPAR) saw a 1.3 per cent increase in 2024 compared to the previous year, driven by higher occupancy levels.
The upper midscale category saw the largest growth in RevPAR at 1.9 per cent.
International visitors and source markets
Dubai’s international appeal continues to thrive, with Western Europe representing the largest source market, accounting for 20 per cent (3.7 million) of total visitors in 2024.
South Asian visitors contributed 17 per cent, while GCC tourists and Eastern Europeans accounted for 15 per cent and 14 per cent, respectively.
Visitors from Northeast and Southeast Asia saw the most significant growth, particularly due to the rebound of outbound tourism from China.
Dubai International Airport (DXB) also achieved a new milestone, welcoming 92.3 million passengers in 2024, a 6.2 per cent increase over the previous year.
December 2024 marked the airport’s busiest month on record, with 8.2 million passengers passing through.
Performance across the UAE
While Dubai remains the main driver of hotel performance, other emirates also saw growth in their tourism sectors. Abu Dhabi led the UAE in ADR growth, with city hotels and resorts experiencing increases of 14.5 per cent and 14.4 per cent, respectively.
Ras Al Khaimah also saw a 14 per cent increase in ADR, partly due to the completion of the Waldorf Astoria renovation. Fujairah recorded a 4 per cent increase in ADR, with new tourism initiatives aimed at boosting visitor numbers.
Ras Al Khaimah recorded 1.28 million visitors in 2024, a 5 per cent increase from the previous year, and the planned Wynn Al Marjan Island resort, set to open in 2027, is expected to further boost tourism in the region.
