Dubai‘s hotel inventory grew to almost 152,300 rooms across 818 hotels in the first eight months of 2025, with occupancy and average daily rates (ADR) also increasing compared with the same period last year, according to research by Cavendish Maxwell.
Between January and August, premium segments accounted for the majority of supply, with 54,100 rooms in the 5-star category and 43,400 in 4-star hotels. Together, they made up almost two thirds (64 per cent) of Dubai’s total hotel stock, the company said.
Cavendish Maxwell’s report, released to coincide with the Future Hospitality Summit World, comes as Dubai’s tourism sector reaches another milestone, with 12.54 million international visitors in the first 8 months of the year โ up more than 5 per cent on the same time in 2024.
“Dubai’s hospitality market has performed strongly so far in 2025, with passenger traffic, international visitor numbers, occupancy rates, and average daily rates all rising compared with the same period last year. This growth is supported by the city’s safety, accessibility, diverse offerings and vibrant calendar of events, with Government-led initiatives and new attractions further enhancing Dubai’s appeal,” Vidhi Shah, Director, Head of Commercial Valuation at Cavendish Maxwell said in a statement.
“As we enter the peak travel period and the height of Dubai’s events season, with Eid Al Etihad and the festive season looming large, international visitor arrivals are conservatively forecast to reach 19.5 million by year-end, while hotel occupancy for the rest of 2025 is expected to reach 78.5 per cent. Average daily rates are also projected to rise, driven by ongoing leisure and business travel, the expansion of premium hotel supply, and Dubai’s status as a leading global luxury destination,” she added.
Five-star hotels in Dubai record highest occupancy growth
Cavendish Maxwell’s insight also reveals that from January to August 2025, hotel occupancy reached an average 78.5 per cent, up 3.0 per cent compared to last year.
Five-star hotels saw the biggest occupancy growth, up 4.1 per cent. Next were deluxe/superior hotel apartments, up 3.8 per cent, and standard hotel apartments, up 2.5 per cent. ADR across the city climbed 4.6 per cent to AED526.
UAE airports welcomed almost 103 million passengers โ a 5.3 per cent rise on last year, with Dubai International Airport (DXB) handling the majority.
Despite temporary airspace restrictions, DXB recorded its busiest first half on record.Western Europe remained Dubai’s largest source market for international visitors, accounting for more than 1 in 5 (21 per cent) of arrivals โ and recording year-on-year growth of more than 12 per cent.
The GCC was the second contributor, representing almost 17 per cent of visitors โ an increase of nearly 16 per cent. Next were CIS and Eastern Europe at nearly 14.5 per cent, the Americas (7 per cent) and Australasia (2 per cent) โ up 9.4 per cent, 11.1 per cent and 12.4 per cent, respectively.
