Hotel occupancy levels across Dubai reached more than 81 per cent in the first half of 2025, marking a 4.5 per cent increase year-on-year, with international visitor numbers climbing 6.1 per cent to nearly 10 million, according to new research from real estate advisory group Cavendish Maxwell.
Cavendish Maxwell’s H1 2025 Dubai hospitality sector performance analysis also reports that the average daily rate (ADR) across Dubai’s hotels and resorts reached AED 745, up 5.5 per cent compared to the same period last year.
With the peak tourism season approaching, Dubai is set to open 19 new hotels – adding more than 5,000 rooms – by the end of 2025, increasing the Emirate’s total inventory to 157,144 keys across 748 hotels. In H1 alone, almost 900 rooms across five hotels were delivered.
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.”
Key Highlights from Cavendish Maxwell’s H1 2025 Report:
- Dubai’s hotel inventory has risen from 670 establishments in 2021 to around 730, a 9.3 per cent increase.
- Total keys have grown nearly 11 per cent, 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 disruptions. Dubai World Central recorded over 36 per cent growth in passenger traffic.
- 67 per cent of Dubai’s hotels fall in the Luxury, Upper Upscale, or Upscale categories; 84 per cent of upcoming hotels in 2025 are in these premium categories.
- Occupancy and ADR rose across all segments, with Upscale hotels seeing the highest occupancy growth (5.5%) and Upper Midscale hotels recording the strongest ADR increase (8.5%).
- Western Europe remained the largest source market, accounting for over 21 per cent of visitors, up 12 per cent year-on-year.
Upcoming Supply and Segment Focus:
Of the 5,000 rooms expected by year-end, 30.4 per cent are Upscale, 29.8 per cent Upper Upscale, and 24.25 per cent Luxury. The pipeline for 2026 shows a shift toward Luxury, representing 61 per cent of new supply. Midrange categories account for 15 per cent of new rooms this year and 7.6 per cent in 2026.
UAE-Wide Hospitality Trends:
Fujairah posted a 6.1 per cent rise in ADR, with stable occupancy supported by tourism initiatives and new direct flights from Mumbai.
Abu Dhabi city hotels recorded a 28 per cent ADR increase, with resorts up over 21 per cent.
Ras Al Khaimah saw ADR growth of 7.6 per cent, with occupancy up 1.4 per cent.
