Skip to content

Discover a different perspective

News

Dubai to Add Over 11,300 Hotel Rooms by 2027, Nearly 4,620 Expected in 2025

Dubai to Add Over 11,300 Hotel Rooms by 2027, Nearly 4,620 Expected in 2025
Share this article
Text size 14px
Comment

Dubai’s hospitality sector is set for significant growth, with over 11,300 new hotel rooms expected to be added by 2027, according to a report by Cavendish Maxwell. In 2025 alone, nearly 4,620 rooms are scheduled for completion.

In 2024, Dubai expanded its hotel inventory by 4,255 rooms across 19 new hotels, marking a 2.9 percent increase. By December 2024, the total number of hotels in Dubai reached 724, offering 151,245 rooms.

The hospitality market is projected to grow further, with a 3.1 percent increase in 2025 and 3.4 percent in 2026. By 2027, Dubai’s total hotel capacity is expected to exceed 162,600 rooms across 769 properties.

Luxury and Upscale Hotels Continue to Dominate

Dubai’s hospitality market is heavily skewed toward luxury accommodation, with nearly 70 percent of available rooms in 2024 classified under luxury, upper upscale, and upscale categories.

This trend is expected to continue in 2025, as a significant portion of the upcoming hotels will cater to high-end travelers.

Industry Insight:
"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 another 20 hotels and resorts are expected in 2025. This aligns with the Dubai Economic Agenda (D33), which aims to position Dubai among the world’s top three tourism destinations."
— Gergely Balint, Associate Partner at Cavendish Maxwell

Tourism Growth and Economic Contribution

Tourism continues to play a major role in Dubai’s economy. In 2024, the sector contributed Dhs236 billion, accounting for 12 percent of the UAE’s GDP, up from Dhs220 billion in 2023.

The total number of overnight visitors to Dubai increased by 9.1 percent in 2024, reaching a record 18.72 million, compared to 17.15 million in 2023.

Dubai’s tourism appeal was further reinforced by several global recognitions, including multiple World Travel Awards for the world’s leading shopping and exhibition destination. Dubai International Airport was also recognized as the world’s leading airport.

Hotel Performance and Market Trends

Dubai’s hospitality sector maintained strong occupancy rates and steady revenue growth in 2024.

  • Hotel occupancy: 78 percent, a 1 percent increase from 2023
  • Luxury segment occupancy: 3 percent growth, despite a 1.9 percent decline in average daily rates (ADR)
  • Average daily rate (ADR): Dhs690, reflecting a 0.2 percent growth
  • Revenue per available room (RevPAR): 1.3 percent increase, driven by higher occupancy rates
  • Upper midscale hotels: 1.9 percent RevPAR growth, the highest among all categories

Key Source Markets for Tourism

Dubai continues to attract visitors from around the world, with Western Europe remaining the largest source market in 2024.

  • Western Europe: 20 percent (3.7 million visitors)
  • South Asia: 17 percent
  • Gulf Cooperation Council (GCC) countries: 15 percent
  • Eastern Europe: 14 percent
  • Northeast and Southeast Asia: Notable increase, largely due to the resurgence of outbound tourism from China

Dubai International Airport also reported a record 92.3 million passengers in 2024, reflecting a 6.2 percent increase from the previous year. The airport’s busiest month was December 2024, with 8.2 million passengers recorded.

Hospitality Growth Across the UAE

While Dubai remains the focal point of the UAE’s hospitality industry, other emirates have also experienced growth in hotel performance.

Abu Dhabi

  • ADR growth: 14.5 percent for city hotels, 14.4 percent for resorts

Ras Al Khaimah

  • 1.28 million visitors in 2024, reflecting a 5 percent increase from 2023

  • The Wynn Al Marjan Island resort, scheduled to open in 2027, is expected to boost tourism further

Fujairah

  • ADR increase: 4 percent, driven by new tourism initiatives

Conclusion

Dubai’s hospitality sector is on track for substantial expansion, aligning with the Dubai Economic Agenda (D33), which aims to position the city among the top three global travel destinations.

With continuous investments in infrastructure and high-end accommodation, Dubai is expected to strengthen its position as a leading international tourism hub by 2027.

Comments 0

No comments yet. Be the first to share your thoughts.

Leave a comment

Your email is never published. All fields are required.

Related Stories

Continue reading from Gulf Articles

HSBC UAE Wealth Investment Summit 2026 Concludes, Highlighting Regional Investment Opportunities

HSBC UAE Wealth Investment Summit 2026 Concludes, Highlighting Regional Investment Opportunities

HSBC’s UAE Wealth Investment Summit 2026 concluded in Dubai on October 22, bringing together selected clients, senior business leaders and members of the investment community to discuss wealth management, financial markets and long-term investment opportunities. The summit formed part of HSBC’s wider programme of financial-sector engagement in the UAE, as the bank marks 80 years of operations in the country. Discussions took place amid changing global market conditions and the Middle East’s growing role as an international investment hub.

UAE Fuel Prices for November: Will Petrol Stay Above Dh4 per Litre?

UAE Fuel Prices for November: Will Petrol Stay Above Dh4 per Litre?

Petrol prices in the United Arab Emirates could rise further in November as international oil prices climb above $110 per barrel amid renewed concerns over Middle East supply disruptions. With October fuel rates already above Dh4 per litre for all three petrol grades, motorists are waiting for the UAE Fuel Price Committee’s next announcement, expected at the end of October. The final rates will depend on global oil-market conditions and pricing trends during the remainder of the month.

Trust Institute and OKX Partner to Expand Free Financial Trading Education in the UAE

Trust Institute and OKX Partner to Expand Free Financial Trading Education in the UAE

Trust Training and Development Institute (Trust Institute), a Dubai-based financial education provider, has partnered with global fintech company and cryptocurrency trading platform OKX to expand access to free financial-market education across the United Arab Emirates. Announced on October 21, 2026, the initiative aims to help beginners and aspiring traders understand financial markets, trading concepts and risk management without requiring them to invest money or carry out trades.

DIP Holding IPO: How UAE Residents Can Apply for Shares From Dh5,000

DIP Holding IPO: How UAE Residents Can Apply for Shares From Dh5,000

Dubai Investments is preparing to offer a 20% stake in DIP Holding through an initial public offering (IPO), giving UAE residents an opportunity to invest in the company behind Dubai Investments Park. Retail investors can apply with a minimum investment of Dh5,000, while subscriptions are scheduled to open on October 27, 2026. The shares are expected to begin trading on the Dubai Financial Market (DFM) on November 11.

UAE Faced Sleeper-Cell Threats During Iranian Missile and Drone Attacks, Says Official

UAE Faced Sleeper-Cell Threats During Iranian Missile and Drone Attacks, Says Official

The United Arab Emirates faced security threats from alleged sleeper cells during Iranian missile and drone attacks earlier in 2026, according to senior Emirati official Ali Rashid Al Nuaimi. He said hundreds of suspected members were arrested over allegations that they helped guide attacks against the country, highlighting the security challenges the UAE faced alongside aerial threats.

Tristar Group Signs Agreement for Aegis Logistics to Become Majority Shareholder

Tristar Group Signs Agreement for Aegis Logistics to Become Majority Shareholder

Tristar Group has signed an agreement that will allow Aegis Logistics to become its majority shareholder, marking a significant development in the companies' business relationship. The proposed transaction is expected to strengthen their position in the logistics and energy supply chain sectors, with potential implications for regional operations and future expansion.

Fitbit Edge Launched with Replaceable Battery, 7-Day Life and ECG for $180

Fitbit Edge Launched with Replaceable Battery, 7-Day Life and ECG for $180

Fitbit has introduced the Fitbit Edge, a wearable device featuring a replaceable battery, up to seven days of battery life, and electrocardiogram (ECG) functionality at a price of $180. The device focuses on practical health tracking and longer-term usability, offering an alternative for consumers who want smartwatch features without frequent charging or the need to replace the entire device when its battery wears out.

UAE Recalls 1,983 Toyota Highlander Vehicles Over Seat Safety Defect

UAE Recalls 1,983 Toyota Highlander Vehicles Over Seat Safety Defect

The United Arab Emirates has announced a recall of 1,983 Toyota Highlander vehicles after identifying a potential defect in the second-row seat mechanisms. The issue could prevent seatbacks from locking securely, increasing the risk of passenger injuries in the event of a collision. The recall was announced by Al-Futtaim Motors in coordination with the UAE's consumer protection authorities.