The common each day price (ADR) throughout Dubai’s motels and resorts topped AED745, representing a 5.5 per cent improve on the identical interval final yr, the H1 2025 Dubai hospitality sector market efficiency evaluation revealed.
Dubai prepares to open 19 new institutions with greater than 5,000 rooms between them by the tip of 2025, bringing the emirate’s whole stock to 157,144 keys throughout 748 motels. Virtually 900 rooms throughout 5 motels have been delivered in H1 this yr.
5,000 new lodge rooms to open in Dubai H2 2025 as tourism numbers surge
“The primary half of this yr has seen one more excellent efficiency from Dubai’s hospitality sector, which continues to cleared the path in setting new benchmarks in security, inclusivity and connectivity. Authorities initiatives, strategic worldwide partnerships, a packed occasions calendar and new points of interest, coupled with sustained means to draw numerous customer profiles whereas persistently elevating friends’ experiences, has led to development in airport passenger visitors, vacationer figures, lodge occupancy charges, ADR ranges and general lodge stock. With 5,000 new rooms on the way in which this yr – and one other 6,000 in 2026 and 2027 – Dubai is ready to stay and premium, world vacation spot of alternative for each leisure and enterprise travellers,” Vidhi Shah, Director, Head of Business Valuation at Cavendish Maxwell stated.
Dubai’s lodge stock has risen from 670 institutions in 2021 to round 730 in the present day, representing a 9.3 per cent improve. Throughout the identical interval, the variety of keys has grown practically 11 per cent, from 137,600 to 152,000.
Regardless of momentary airspace disruption in Could and June, Dubai Worldwide airport dealt with 46 million passengers in H1 this yr, a 2.3 per cent improve year-on-year. At Dubai World Central, passenger visitors rose greater than 36 per cent.
Greater than two thirds (67 per cent) of Dubai’s present lodge stock falls within the Luxurious, Higher Upscale or Upscale classes, with the remaining 33 per cent within the Higher Midscale, Midscale or Economic system segments. Of upcoming motels in 2025, 84 per cent are within the premium classes.
Occupancy rose throughout all segments in H1, with Upscale motels seeing the most important improve of 5.5 per cent. ADRs climbed throughout all classes, with the most important soar of 8.5 per cent in Higher Midscale institutions.
Of the 9.9 million worldwide guests in H1, Western Europe was the most important supply market, accounting for greater than 1 in 5 vacationers, a 12 per cent improve on final yr.
Of the 5,000 rooms set for supply within the subsequent six months, 30.4 per cent are within the Upscale phase, 29.8 per cent within the Higher Upscale and 24.25 per cent are classed as Luxurious.
Initiatives embody the 259-key Mandarin Oriental Downtown, Anantara Seven Metropolis at Jumeirah Lakes Towers (78 keys) and Jumeirah Residing Enterprise Bay, with 82 keys.
In 2026, the pipeline reveals a shift in direction of the Luxurious sector, which is ready to symbolize 61 per cent of recent provide. Examples embody Ciel Dubai Marina, Dorchester Assortment Ela by Omniyat and InterContinental Portofino.
Classes together with Higher Midscale, Midscale and Economic system collectively account for 15 per cent of recent rooms between July and December this yr, and solely 7.6 per cent in 2026.
Occupancy hit greater than 81 per cent, 4.5 per cent up on final yr. Upscale motels noticed the most important rise of 5.5 per cent adopted by Higher Upscale at 5.2 per cent and Luxurious at 4.5 per cent. Higher-Midscale properties, regardless of sustaining the best occupancy, noticed a acquire of three.43 per cent.
The will increase consequence from a surge in worldwide guests and home staycation demand, in response to Cavendish Maxwell. The total-year forecast for occupancy in 2025 is 78.5 per cent.
ADRs climbed 5.5 per cent to succeed in AED745 in H1, with Higher Midscale motels seeing the strongest improve at 8.5 per cent development.
Luxurious institutions noticed an increase of 4.9 per cent, supported by high-spending leisure and enterprise guests. Upscale and Higher Upscale motels posted features of two.7 per cent and a pair of.5 per cent respectively.
Western Europe remained the most important supply marketplace for Dubai tourism in H1 this yr, accounting for over 21 per cent of tourists, a 12 per cent improve on the identical time final yr.
Guests from the CIS and Jap Europe accounted for 15.4 per cent (up practically 11 per cent) and the GCC 15.3 per cent (up 19 per cent).
While accounting for lower than 2 per cent of tourists, the variety of vacationers from Australasia noticed a soar of greater than 14 per cent. At 7 per cent of whole vacationers, the variety of guests from The Americas climbed nearly 12 per cent.
Outdoors of Dubai, all emirates secured a rise in ADR in H1 2025. Abu Dhabi’s metropolis motels noticed the most important improve of greater than 28 per cent, adopted by Abu Dhabi resorts at over 21 per cent, supported by luxurious experiences, seaside tourism and wellness retreats that attraction to home and worldwide guests.
In Ras Al Khaimah, ADR climbed 7.6 per cent, because of a rise in journey tourism, the attraction of mountain resorts and nature-based experiences, while Fujairah posted a 6.1 per cent improve, fuelled by the attraction of coastal getaways and boutique resorts.
Occupancy charges at Abu Dhabi resorts grew with a 7.5 per cent rise, while Abu Dhabi metropolis motels noticed 1.1 per cent development.
The enhancements have been supported by a 13 per cent rise in passenger visitors at Abu Dhabi Worldwide Airport, which welcomed 15.8 million folks between January and June. Air connectivity, mixed with demand from company journey, the MICE sector and government-backed initiatives, additional supported Abu Dhabi’s hospitality sector development.
At Ras Al Khaimah, which acquired 653,000 guests in H1 (up 5.7 per cent on H1 final yr), occupancy charges rose 1.4 per cent.
Occupancy charges remained steady at Fujairah, because of initiatives together with a United Nations World Tourism Organisation (UNWTO)-backed occasion highlighting the world’s journey tourism and pure landscapes, coupled with new each day flights from Mumbai.