New Hotel Openings In Dubai Set To Shape The Tourism Landscape Of The Region

Published on September 8, 2025

Dubai’s hospitality marketplace has continued to transcend expectations successful nan first half of 2025. Hotel occupancy levels surged to much than 81 percent, a notable 4.5 percent year-on-year increase. With astir 10 cardinal world visitors recorded betwixt January and June, nan metropolis is witnessing an awesome upswing successful tourism numbers, up by 6.1 percent compared to nan erstwhile year. The accordant emergence successful world visitors and nan capacity of nan hospitality assemblage item Dubai’s expanding prominence arsenic a world-class destination for some leisure and business.

Strong Growth successful Hotel Occupancy and Average Daily Rate (ADR)

Cavendish Maxwell, a starring existent property advisory group, has provided an insightful study of Dubai’s hospitality sector. The information reveals that nan average regular complaint (ADR) crossed Dubai’s hotels and resorts reached AED 745, marking a 5.5 percent increase from nan aforesaid play past year. This maturation is attributed to some strong world tourism and domestic demand. Dubai’s luxury sector, known for its high-quality services and exclusive offerings, has peculiarly benefited from nan emergence successful high-spending visitors.

As nan metropolis enters its highest tourism season, location is overmuch anticipation arsenic 19 caller hotels pinch complete 5,000 rooms are expected to unfastened by nan extremity of 2025. This will bring nan full edifice inventory to 157,144 keys crossed 748 establishments. In nan first half of this twelvemonth alone, almost 900 caller rooms were delivered, reflecting nan continued finance successful Dubai’s hospitality infrastructure. These developments are group to heighten nan city’s expertise to cater to nan increasing influx of world travelers.

Sustained Growth and New Developments

The wide maturation of Dubai’s hospitality assemblage tin beryllium seen successful nan summation successful edifice inventory. The number of establishments has risen by 9.3 percent since 2021, increasing from 670 hotels to astir 730 today. In nan aforesaid period, nan full number of edifice keys accrued by almost 11 percent, from 137,600 to 152,000. With authorities initiatives and strategical world partnerships driving this description , Dubai’s hospitality assemblage is well-positioned to stay a starring world destination.

According to Vidhi Shah, Director and Head of Commercial Valuation astatine Cavendish Maxwell, nan occurrence of Dubai’s hospitality assemblage tin beryllium attributed to nan city’s commitment to safety, inclusivity, and connectivity. A packed almanac of events, a divers scope of attractions, and continuous efforts to elevate impermanent experiences person contributed to record-breaking performance crossed cardinal metrics specified arsenic airdrome rider traffic, tourer numbers, edifice occupancy rates, ADR levels, and wide edifice inventory. With much than 5,000 caller rooms group to unfastened this year, Dubai’s power successful nan world tourism marketplace is expected to continue.

Hotel Segmentation and Future Prospects

Dubai’s hospitality inventory is predominantly concentrated successful nan luxury, precocious upscale, and upscale categories, pinch 67 percent of nan city’s hotels falling into these premium segments. The remaining 33 percent are classified successful nan upper midscale, midscale, and system segments. Looking ahead, 84 percent of caller hotels successful 2025 will beryllium to these higher-end categories, ensuring that nan metropolis remains a apical destination for luxury and business travelers.

In nan 2nd half of 2025, astir 30.4 percent of caller rooms will beryllium located successful nan upscale segment, followed intimately by 29.8 percent successful nan precocious upscale category. Luxury hotels will besides spot a important stock of caller rooms, accounting for 24.25 percent of nan full supply. Notable projects scheduled for completion see nan 259-key Mandarin Oriental Downtown, Anantara Seven City astatine Jumeirah Lakes Towers pinch 78 keys, and Jumeirah Living Business Bay, which will person 82 keys.

The displacement successful nan edifice improvement pipeline is expected to beryllium much pronounced successful nan pursuing years. By 2026, nan luxury assemblage will dominate, comprising 61 percent of nan full caller edifice inventory. Prominent upcoming projects see Ciel Dubai Marina, Dorchester Collection Ela by Omniyat, and InterContinental Portofino. Meanwhile, nan midrange and affordable categories, including upper midscale, midscale, and system hotels, are group to lend only 15 percent of caller rooms successful 2025.

Growing Occupancy Across All Segments

Dubai’s hotel occupancy rates person knowledgeable maturation crossed each marketplace segments successful H1 2025. The wide occupancy complaint for nan metropolis reached 81 percent, a 4.5 percent increase from nan aforesaid play past year. Upscale hotels saw nan astir important growth, pinch a 5.5 percent increase, followed by upper upscale hotels astatine 5.2 percent and luxury establishments astatine 4.5 percent. The upper midscale category, contempt already having nan highest occupancy rate, knowledgeable a much humble summation of 3.43 percent.

The surge successful occupancy is attributed to nan emergence successful world visitors and nan continued fame of domestic staycations. This robust capacity has led to a full-year forecast for edifice occupancy successful 2025 to scope 78.5 percent.

Average Daily Rate (ADR) Growth

In position of average regular complaint (ADR), Dubai has seen wide maturation crossed its edifice categories. The city’s ADR accrued by 5.5 percent, reaching AED 745 successful H1 2025. The upper midscale segment saw nan highest growth, pinch ADR rising by 8.5 percent. Luxury hotels besides knowledgeable a important increase, pinch ADR increasing by 4.9 percent, mostly driven by nan influx of high-spending leisure and business visitors. Meanwhile, upscale and upper upscale hotels saw much humble increases of 2.7 percent and 2.5 percent, respectively.

Global Sources of Visitors to Dubai

Dubai continues to pull a divers scope of world visitors. In H1 2025, Western Europe remained nan largest root marketplace for tourism, accounting for 21 percent of each visitors. This represented a 12 percent increase complete nan erstwhile year. The CIS and Eastern Europe regions besides saw important growth, pinch visitant numbers rising by 11 percent to relationship for 15.4 percent of full arrivals. Similarly, visitors from nan GCC region roseate by 19 percent, contributing to 15.3 percent of Dubai’s full visitors.

Despite making up a smaller information of nan full tourer arrivals, Australasia and The Americas saw notable growth. Visitors from Australasia accrued by 14 percent, while nan number of visitors from The Americas grew by 12 percent.

Hospitality Performance Across nan UAE

Beyond Dubai, nan wider UAE hospitality assemblage has besides witnessed awesome maturation successful 2025. Abu Dhabi saw important improvements successful ADR crossed some metropolis hotels and resorts, pinch metropolis hotels experiencing a 28 percent increase and resorts rising by 21 percent. This maturation was driven by a surge successful luxury tourism, beach tourism, and wellness retreats. In Ras Al Khaimah, ADR climbed by 7.6 percent, acknowledgment to nan increasing fame of adventure tourism and upland resorts. Fujairah besides saw a 6.1 percent increase, fueled by its entreaty arsenic a coastal getaway and boutique resort destination.

In Abu Dhabi, nan emergence successful rider postulation astatine Abu Dhabi International Airport contributed to accrued occupancy rates, pinch resorts seeing a 7.5 percent rise successful occupancy. Ras Al Khaimah recorded a 1.4 percent summation successful occupancy, while Fujairah remained stable.