Dubai’s hotel inventory reached 158,700 keys across 770 establishments in 2025, with almost 70 per cent in the high-end category, according to a report by Cavendish Maxwell.
The real estate advisory and property consultancy said Dubai opened 3,400 rooms last year, representing annual growth of 2.2 per cent. Ten new hotels entered the market, marking an increase of 1.3 per cent compared with 2024.
A further 4,600 rooms are scheduled for completion in 2026, the report said.
High-end hotels dominate 70% of Dubai’s hospitality market
Cavendish Maxwell’s Dubai Hospitality Sector 2025 Market Performance report found that high-end hotels – including Upscale, Upper Upscale and Luxury categories – accounted for nearly seven in 10 properties at the end of 2025. Around 30 per cent of hotels were in mid-range segments. Almost 90 per cent of hotels planned for delivery in 2026 are in higher-class segments.
Hotel occupancy in Dubai reached an average of 81 per cent in 2025, reflecting annual growth of 3.8 per cent. Upscale hotels recorded the largest increase in occupancy at 4.9 per cent, followed by the Luxury segment at 4.5 per cent. The highest occupancy level, at 84.4 per cent, was reported in the Upper Midscale segment.
Average Daily Rates (ADR) rose to AED746, representing an increase of 8.7 per cent compared with 2024. The Upper Midscale segment recorded the highest ADR growth at 10.4 per cent.
Dubai welcomed 19.6 million tourists in 2025. Western Europe remained the largest source market at 21 per cent. The Gulf Cooperation Council accounted for 15.3 per cent, followed by CIS and Eastern Europe at 14.8%, South Asia at 14.7 per cent, and the Middle East and North Africa at 11.1 per cent.
North and South-east Asia contributed 9.5 per cent of visitors, while the Americas accounted for 7.1 per cent, Africa 4.6 per cent, and Australasia 2 per cent.
“Dubai’s tourism and hospitality sectors continued to perform strongly in 2025. The city’s diverse offerings – an expanded events calendar, a growing portfolio of hotels and resorts, adventure experiences, globally-renowned shopping festivals and world-class dining scene – have driven a shift in travel behaviour, with tourists moving beyond traditional sightseeing towards high- impact, experiential travel,” Vidhi Shah MRICS, Director, Head of Commercial Valuation at Cavendish Maxwell said in a statement.
UAE hospitality sector records occupancy and ADR growth across emirates
The hospitality sector also recorded growth in other parts of the UAE. Abu Dhabi reported occupancy of 82.8 per cent at city hotels and 78.6 per cent at resorts. ADR increased by 21.3 per cent across both categories.
In Ras Al Khaimah, occupancy rose by 4.6 per cent to 75 per cent, with ADR increasing by 6.6 per cent to AED618. Fujairah recorded occupancy of almost 75 per cent, while ADR increased by 12.8 per cent to AED433.
The report noted that geopolitical tension may introduce uncertainty in the short term. However, it stated that Dubai’s core fundamentals remain stable.
It added that the emirate’s recovery capabilities and market structure are expected to support its position as a tourism destination.
