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Dubai hotel occupancy tops 81% in H1 as tourism surges, says Cavendish Maxwell

Occupancy rose across all segments, with upscale hotels recording the highest increase at 5.5 per cent

Rajiv Pillai
Rajiv Pillai

08 September, 2025

Dubai hotel occupancy tops 81% in H1 as tourism surges, says Cavendish Maxwell
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Hotel occupancy in Dubai reached more than 81 per cent in the first half of 2025, marking a 4.5 per cent year-on-year rise, according to new research from real estate advisory firm Cavendish Maxwell. The emirate also welcomed nearly 10 million international visitors during the period, up 6.1 per cent compared to the same time last year.

Cavendish Maxwell’s H1 2025 hospitality sector performance report shows the average daily rate (ADR) across Dubai hotels and resorts climbed 5.5 per cent year-on-year to AED745. With the peak tourism season approaching, 19 new hotels with over 5,000 rooms are set to open by the end of 2025, bringing Dubai’s total hotel inventory to 157,144 keys across 748 properties. Almost 900 rooms across five hotels were delivered in the first half of the year.

Vidhi Shah, director, head of commercial valuation at Cavendish Maxwell, said: “The first half of this year has seen yet another outstanding performance from Dubai’s hospitality sector, which continues to lead the way in setting new benchmarks in safety, inclusivity and connectivity. Government initiatives, strategic international partnerships, a packed events calendar and new attractions, coupled with sustained ability to attract diverse visitor profiles while consistently elevating guests’ experiences, has led to growth in airport passenger traffic, tourist figures, hotel occupancy rates, ADR levels and overall hotel inventory. With 5,000 new rooms on the way this year – and another 6,000 in 2026 and 2027 – Dubai is set to remain and premium, global destination of choice for both leisure and business travellers.”

Vidhi Shah, director, head of commercial valuation at Cavendish Maxwell

Key findings from Cavendish Maxwell’s report

  • Dubai’s hotel inventory has grown from 670 establishments in 2021 to about 730 in 2025 – an increase of 9.3 per cent.

  • The number of hotel keys has risen nearly 11 per cent over the same period, from 137,600 to 152,000.

  • Dubai International Airport handled 46 million passengers in H1 2025, a 2.3 per cent increase year-on-year, despite temporary airspace disruption in May and June. Passenger traffic at Dubai World Central rose more than 36 per cent.

  • Around 67 per cent of Dubai’s hotel inventory is in the luxury, upper upscale, or upscale categories, with 33 per cent in Upper Midscale, Midscale, or Economy segments.

  • In 2025, 84 per cent of new hotels are in premium categories.

  • Occupancy rose across all segments, with upscale hotels recording the highest increase at 5.5 per cent.

  • ADRs grew across all segments, with Upper Midscale properties leading at 8.5 per cent.

  • Of the 9.9 million visitors in H1, Western Europe was the largest source market, accounting for over 21 per cent of arrivals – a 12 per cent increase year-on-year.

Market outlook: Upscale growth and Luxury dominance ahead

Of the 5,000 rooms scheduled for delivery by year-end, 30.4 per cent are in the Upscale category, 29.8 per cent in Upper Upscale, and 24.25 per cent in Luxury. Key projects include the 259-key Mandarin Oriental Downtown, Anantara Seven City at Jumeirah Lakes Towers (78 keys), and Jumeirah Living Business Bay (82 keys). Looking ahead, Luxury will dominate the 2026 pipeline, accounting for 61 per cent of new supply, with major developments such as Ciel Dubai Marina, Dorchester Collection Ela by Omniyat, and InterContinental Portofino.

Midrange categories (Upper Midscale, Midscale, and Economy) will collectively make up 15 per cent of new supply in 2025 and just 7.6 per cent in 2026.

Beyond Dubai: Hospitality growth across the UAE

Hospitality performance was strong across other emirates in H1 2025. Abu Dhabi’s city hotels saw ADRs rise more than 28 per cent, while resorts increased over 21 per cent, supported by demand for luxury, beach, and wellness tourism. Ras Al Khaimah recorded a 7.6 per cent ADR rise and welcomed 653,000 visitors, up 5.7 per cent year-on-year. Fujairah ADRs climbed 6.1 per cent, underpinned by coastal and boutique resort demand.

Read: UAE hotels reach 70% occupancy: What’s behind the surge?

Occupancy at Abu Dhabi resorts rose 7.5 per cent, while city hotels grew 1.1 per cent, supported by a 13 per cent rise in passenger traffic at Abu Dhabi International Airport, which handled 15.8 million passengers in H1. RAK occupancy increased 1.4 per cent, while Fujairah maintained stable rates, supported by new direct flights and UNWTO-backed adventure tourism initiatives.

Riyadh Metro: 100 million riders, bright new 5:30am start

This schedule adjustment comes in direct response to growing commuter demand and is aimed at reducing congestion during peak hours

Nida Sohail
Nida Sohail

07 September, 2025

Riyadh Metro: 100 million riders, bright new 5:30am start
Image credit: Saudi Press Agency/ Website

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In a move designed to better accommodate students, early-shift workers, and morning commuters, Riyadh Metro will now start daily operations at 5:30am, the city’s public transport authority has confirmed.

This schedule adjustment comes in direct response to growing commuter demand and is aimed at reducing congestion during peak hours, particularly on busy corridors.

Image credit: Saudi Press Agency/ Website

Officials stated that the change is also part of Riyadh’s broader push to cut private vehicle use and improve air quality, a Saudi Gazette report said.

Read more-Riyadh Metro: 5 ways it will boost transport in Saudi’s biggest city

The move supports Riyadh’s ongoing strategy to expand and modernise its public transit network in line with the capital’s sustainability and quality-of-life objectives.

100 million passengers since December launch

The new operating hours follow an impressive milestone: Riyadh Metro has served over 100 million passengers since it launched in December 2024, according to the Royal Commission for Riyadh City (RCRC).

Image credit: Saudi Press Agency/ Website

According to a Saudi Press Agency report, This achievement was reached in less than nine months, highlighting the rapid adoption and popularity of the metro system. The Blue Line, which runs along the Olaya-Batha corridor, saw the highest ridership with 46.5 million passengers, followed by the Red Line on King Abdullah Road with 17 million and the Orange Line on Al Madinah Al Munawwarah Road with 12 million. The other three lines together transported 24.5 million riders.

Punctual and popular

Riyadh Metro has also earned praise for its punctuality, recording an operational on-time rate of 99.78 per cent. Some of the busiest stations include Qasr Al Hokm, KAFD, stc, and the National Museum, which together accounted for over 29 per cent of total passenger traffic.

Seamlessly connected to a wide-reaching bus network, on-demand shuttles, and public transport parking facilities, the metro is a key part of Riyadh’s vision for a modern, accessible, and eco-friendly transportation ecosystem. Authorities say these efforts aim to provide convenient, reliable alternatives to private car use for both residents and visitors.

UAE lunar eclipse set to stun skywatchers: How to watch this celestial event

The moon will rise above the eastern skies before the eclipse begins, while those in central areas will see it already underway

Nida Sohail
Nida Sohail

07 September, 2025

UAE lunar eclipse set to stun skywatchers: How to watch this celestial event
Image credit: Getty Images

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Skywatchers across the Arab world are in for a treat on Sunday evening, as the International Astronomical Centre will livestream the total lunar eclipse from the Al Khattm Astronomical Observatory. The four-hour live broadcast will run from 7:30pm to 11:50pm UAE time, offering a front-row seat to a rare and visually captivating cosmic event.

Read more-Here’s why AI will never replace the voice in your head

Engineer Mohammed Shawkat Odah, Director of the International Astronomical Centre, confirmed the eclipse will be visible in varying degrees across the Arab region.

The moon will rise above the eastern skies before the eclipse begins, while those in central areas will see it already underway. In the western Arab world, the Moon will appear above the horizon during the latter stages of the phenomenon, a WAM report said.

Image credit: WAM/Website

Timings and phases of the eclipse

According to the Centre’s timeline, the eclipse will unfold in several distinct stages:

  • 7:28pm – Moon enters the penumbra
  • 8:27pm – Partial eclipse begins
  • 9:31pm – Total eclipse starts
  • 10:12pm – Peak of the eclipse
  • 10:53pm – End of total eclipse
  • 11:57pm – End of partial eclipse
  • 12:55am (Monday) – End of entire event

Odah noted the moon will be clearly visible to the naked eye from 8:15pm to 12:15am, especially during totality, when it may turn a range of colors, from bright orange to deep red, due to sunlight refracting through Earth’s atmosphere.

He emphasised that the color and brightness of the moon during an eclipse are indicators of atmospheric purity. Increased pollution or volcanic activity, for example, can darken the Moon’s hue significantly. He cited the total lunar eclipse of December 12, 1992, when the moon nearly vanished from view due to the lingering effects of the Mount Pinatubo eruption in 1991.

UAE calls for Eclipse Prayer

In a spiritual reflection of the event, the General Authority of Islamic Affairs, Endowments, and Zakat in Abu Dhabi has called on the public to perform the Eclipse Prayer on Sunday evening. This aligns with Islamic tradition, following the example of Prophet Muhammad (Peace be upon him), who performed special prayers during cosmic events.

The UAE Council for Fatwa stated that the prayer is recommended for all adult Muslims, regardless of whether the eclipse is partial or total.

Whether you plan to tune in online or gaze skyward from your backyard, Sunday’s eclipse promises to be a mesmerising blend of science and spirituality. With perfect timing and clear visibility expected across most of the UAE, it’s an ideal moment to pause and reflect on the wonders of the universe, and perhaps, say a prayer too.

82-minute lunar eclipse set for Sunday

A total lunar eclipse will be visible to the naked eye across Saudi Arabia, other Arab nations, much of Asia, Australia, and parts of Europe and Africa, according to a report by the Saudi Press Agency.

Majed Abu Zahra, Director of the Jeddah Astronomy Society, stated that the eclipse will last approximately five hours and 27 minutes in total. The totality phase, the most visually striking part of the event, will last for 82 minutes, making it one of the longest total lunar eclipses since 2018.

Dubai: 28th Universal Postal Congress to run from Sept 8-19 at DWTC

Held every four years, the congress is the UPU’s highest decision-making body and convenes ministers, national postal chiefs and experts from both public and private sectors

Gulf Business
Gulf Business

07 September, 2025

Dubai: 28th Universal Postal Congress to run from Sept 8-19 at DWTC
Image: DWTCA

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The UAE will host the 28th Universal Postal Congress in Dubai from September 8 to 19, bringing together more than 2,000 delegates from 192 member states to discuss the future of the global postal sector.

The event, held under the patronage of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, will take place at the Dubai World Trade Centre. It will also draw virtual participants.

Delegations will adopt the Universal Postal Union’s (UPU) 2026-2029 roadmap, to be named the “Dubai Strategy”, and elect new leadership including the UPU DG, deputy DG, and members of the Council of Administration and the Postal Operations Council.

“The UAE demonstrates its substantial role in developing an integrated international ecosystem that reinforces international communication and creates platforms for meaningful dialogue aimed at crafting future-focused policy,” said Sultan bin Saeed Al Mansoori, chairman of the Supreme Supervision & Preparation Committee for the Congress.

Universal Postal Congress is held every four years

Held every four years, the congress is the UPU’s highest decision-making body and convenes ministers, national postal chiefs and experts from both public and private sectors. This year’s event comes amid rising eCommerce volumes, growing digitalisation, and increasing demands for quality, reliability and cybersecurity in postal systems.

The congress is expected to approve changes to postal products and remuneration systems, raise service standards, and promote collaboration across the wider logistics ecosystem. Other outcomes include expanding postal financial services to support financial inclusion, improving sustainability and energy transition efforts, and enhancing data protection and cybersecurity.

“The congress serves as the primary platform for channelling international efforts towards a more inclusive, secure and efficient postal and logistics system,” said Badr Al-Olama, honorary chair of the congress and chairman of the Board of Directors, 7X. “The projected results, especially the UPU Postal roadmap, or ‘Dubai Strategy’, will boost digital integration and enhance service experience for individuals and businesses by embracing unified standards.”

The event is being hosted by the UAE government in cooperation with federal and local authorities, as well as regulatory and service partners.

Aldar to build UAE’s first Tesla Experience Centre on Yas Island

Strategically located along the E12 with excellent connections to Abu Dhabi and Dubai, the new Tesla centre will be completed by 2027

Neesha Salian
Neesha Salian

07 September, 2025

Aldar to build UAE’s first Tesla Experience Centre on Yas Island
Image: Supplied

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Aldar announced today plans to deliver the UAE’s first Tesla Experience Centre on Yas Island.

The build-to-suit facility will bring together a showroom, service centre and delivery hall into a single integrated site.

This development further enhances Yas Island’s growing reputation as one of the UAE’s most strategic locations for global brands to have a presence, and reflects Aldar’s position as a partner of choice for international clients seeking prime build-to-suit real estate in the UAE.

Developed across a leasable area of more than 5,000 sqm, the facility is designed to deliver an elevated customer experience and optimise operational efficiency, strengthening Tesla’s local presence and supporting its long-term growth strategy in the UAE.

Jassem Saleh Busaibe, CEO at Aldar Investment, said: “This build-to-suit development for one of the world’s most recognisable brands represents another step in the evolution of Aldar’s industrial and logistics offerings. It reflects the confidence global companies have in Aldar as a partner of choice, and in Yas Island as a strategic base for long-term growth.”

Pawel Trzpis, GM at Tesla Middle East, said: “We are excited to expand our operations in Abu Dhabi, the capital of the UAE, with our first purpose-built site. We look forward to welcoming our current and future customers to experience this site upon its public opening. This milestone solidifies our focus and commitment to expanding in the region.”

Tesla Experience Centre: Key highlights

The centre will feature 170 dedicated parking spaces equipped with 20 V4 Tesla Supercharger stalls, complementing the full suite of integrated services offered on-site.

The facility will target Estidama 3 Pearl rating and incorporates net zero-aligned design principles, including high-efficiency heating, ventilation, and air conditioning systems, low-emission materials, rooftop solar power, LED lighting, and rainwater recycling systems to support landscaping and facility operations.

Strategically located along the E12 with excellent connections to Abu Dhabi and Dubai, the new Tesla centre will be completed by 2027.

Dubai Metro Blue Line: Traffic diversions announced

Key among these is the closure of the road leading to the multi-storey car park at Centrepoint Station from Airport Road.

Nida Sohail
Nida Sohail

06 September, 2025

Dubai Metro Blue Line: Traffic diversions announced
Image credit: Dubai Media Office/X account

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Dubai’s Roads and Transport Authority (RTA) has announced traffic diversions as work begins on the highly anticipated Dubai Metro Blue Line. Key among these is the closure of the road leading to the multi-storey car park at Centrepoint Station from Airport Road.

Motorists are advised to follow directional signage at affected areas and plan alternate routes to avoid disruptions. Similar adjustments are also in effect near Creek Station, coinciding with early construction activity.

Read more-Public transport updates: Dubai Metro lines rerouted, more public bus services

The RTA is urging commuters to plan their journeys in advance to ensure a smooth and seamless travel experience during this major infrastructure phase.

Two new marine stations open on Dubai Creek

In a separate but significant development, the RTA has inaugurated two new marine transport stations: Old Dubai Souq and Al Sabkha, both strategically located along Dubai Creek, an RTA report said.

These stations mark a key milestone in the RTA’s Marine Transport Strategic Plan 2020–2030, which aims to transform water transport into a reliable and efficient mobility option for the emirate.

The project upgrades follow the model of previously renovated stations at Bur Dubai and Old Deira Souq, reinforcing the authority’s push to modernise while preserving heritage.

Major upgrades and eco-friendly design

New features include a 50 per cent expansion in shaded waiting areas, improved lighting, investment and retail spaces, and materials that are both eco-friendly and sustainable. Facilities now fully comply with Dubai’s Code for People of Determination, ensuring accessibility for all.

To improve working conditions, the RTA has also installed an air-conditioned rest area for operators of traditional wooden abras, enhancing comfort and operational efficiency.

Efficiency, speed, and safety prioritised

The RTA completed the two marine stations simultaneously to cut costs, accelerate delivery, and boost economic efficiency. An operational plan is in place to maintain trip schedules, enhance safety, and ensure smooth navigation through the area.

Marine transport ridership has already seen significant growth, with 9.7 million passengers using water transport modes in the first half of 2025 alone.

With both land and water mobility upgrades now underway, Dubai continues to strengthen its status as a global leader in smart, integrated transport solutions.

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