If the UAE hospitality market 2025 is taken into consideration, some major trends are noticeable. This Middle Eastern country is significantly increasing the number of luxury hotels it currently hosts, seeking to match its infrastructure to the rising number of incoming tourists.
In a major update, the number of hotels in Dubai has surpassed the number in Las Vegas, the traditional racer in the global hospitality scene. Plus, that’s not all. The business in Dubai is on the rise, but the same cannot be said about Las Vegas. Today, Dubai is only second to London in the global hotel race, beating other key players like Bangkok.
The UAE, in its entirety, is doubling its existing focus on the luxury hotel landscape. Starting from Abu Dhabi hospitality sector 2025 to Ras al Khaimah hotel development pipeline, there is a lot happening in and around the UAE – and all mid-range travellers from across the globe should pay attention to the changing hotel dynamics.
Let’s take a look at the existing and upcoming UAE hospitality market scenarios. Global property consultancy Knight Frank has presented a detailed analysis of the country’s hospitality market, calling the Emirates a magnet for the hospitality market. The entity is expecting an active market for hotel deals in the UAE.
Current Performance Snapshot of UAE hospitality market (2024-2025)
‘The UAE has understood the game perfectly, managing to balance demand and supply better than regional and international competitors.’
The UAE is ruling the hospitality investment trends Middle East 2025. In the first eight months of 2025, the UAE hospitality market noted another strong performance. Both the revenue per available room (RevPAR) and the average daily rate (ADR) are up 11.9% year-on-year. This is a major progress and highlights the country’s changing market dynamics.
The capital Abu Dhabi noted the strongest progress as RevPAR increased by 24% and ADR rose by 20.2% year-on-year. Dubai comes second on the list at a 10.1% RevPAR rise and Ras al Khaimah came close in the third position at 10%. Besides these couple of parameters, the average occupancy rate across the UAE also rose 4% in the eight months, at 78.5%.
The UAE hospitality sector is bound for a lot more progress than it has seen in the past. The aforementioned statistics highlight one important thing: this Middle Eastern country is leaving no stone unturned to match its infrastructure to the tourist numbers. In fact, some 22 million tourists are expected to have visited Dubai alone by the end of 2025.
Supply and pipeline: UAE hospitality market set for steep rise
‘By the end of 2030, the total number of hotel rooms in the UAE could rise to a significant 235,674 in 1,184 hotels.’
Knight Frank has released some incredible numbers about the UAE hospitality market. The UAE is solidifying its position as a global luxury destination. Tens of thousands of tourists are coming to the country to indulge in its offerings, making memories that last a lifetime.
Of the existing 213,928 hotel rooms in the UAE, 26% are classified as upscale, 22% luxury and 21% upper scale. To all the mid-range tourists planning trips to the UAE in the near future, the game is changing and you should pay heed to it. By the end of this year, the total number of hotel rooms in the UAE could rise to 217,853 – a 3% increase compared to 2024. By the end of 2030, this number could be 235,674 rooms in 1,184 hotels, as per Knight Frank.
The UAE is seeing progress in double digits and Dubai is leading. The UAE hospitality market is largely supported by Dubai at 165,339 existing and upcoming keys. The next largest markets tend to be the capital Abu Dhabi at 37,016 keys, Sharjah at 14,478 keys and Ras al Khaimah at 11,902 keys. The UAE’s upcoming supply of hotel rooms is primarily coming from Dubai.
UAE hospitality market investment and transaction landscape
‘Not shrouded by Dubai anymore, Abu Dhabi, Sharjah and Ras al Khaimah are emerging as ‘complementary investment destinations’’.
You can expect a number of incredible upcoming hotels in UAE to open their doors in the near future. The best part is it is not just Dubai but the other key Emirates in the country that are constantly luring global investors’ attention and letting more tourists experience their booming tourism offerings. Let me highlight some of the key updates from recent days.
Take Radisson RED Marjan Island, for example. The First Group Hospitality and BB Holding are joining hands to bring one of the most indulgent hotels in Ras al Khaimah to reality. This AED 215 million property is going to feature 261 rooms and suites, plenty of F&B outlets and more experiences. But that’s not all. Ras al Khaimah is also getting Wynn Al Marjan Island, scheduled for a 2027 opening. This could be the first UAE casino resort and bring in tens of thousands of tourists from across the globe to the underrated Ras al Khaimah.
Basically, the UAE hospitality market is maturing. From regional family offices to international investors, different parties are being attracted to the country for its broad range of offerings. “The rise of branded residences and lifestyle-led concepts is further diversifying the transaction landscape,” Knight Frank quoted an expert as saying.
Dubai is leading in numbers, but the other Emirates are also emerging as key players. The UAE capital of Abu Dhabi is getting a number of important hotel openings in the near future, such as Straylight Yas, Vignette Collection. Once open, it is going to be the largest Vignette Collection resort globally. Isn’t it incredible? The UAE hospitality market is in for some serious business and the numbers are quite encouraging.
Let’s take the top racer, Dubai, for example. In terms of the UAE hotel supply forecast, Dubai is certainly leading. The tallest hotel globally, Ciel Dubai Marina, is set for an opening this November 2025. Just recently, plans got announced about The Leela Hotels opening its first international property in Palm Jumeirah. It has been reported that Palm Jumeirah gets more than 5 million tourists each year, making it one of the best things to do in Dubai. The fact that The Leela Hotels (a key hospitality player in the Indian market) has chosen Dubai as the location for its first international property speaks volumes about the place. In another recent update, The First Group Hospitality and Marriott recently joined hands for the strategic rebranding of three iconic hotels in Dubai, including The First Collection Dubai Marina.
Numbers and facts do not lie. Therefore, Dubai is getting a lot of branded residences UAE in the near future. The same can be said about the other Emirates. The UAE hospitality sector is in for a lot more progress than the current scenario and things are only going to get more interesting from here. Someone has rightfully said that this is just the beginning.
Key drivers and risks in UAE hospitality market 2025
‘The UAE has built itself a hospitality market that manages to operate efficiently despite geopolitical and economic fluctuations.’
The UAE hospitality market is in the rise phase as it sees a significant rise in hotel openings and a big spike in tourist numbers all year round. The main reason for all of this progress happening is the country’s intention to balance the supply and demand game. Isn’t that the most basic thing that many countries are failing at? The UAE has found the perfect balance and is deepening its focus on increasing the tourist numbers and, simultaneously, matching its infrastructure to suit the demands.
But besides all of it, the UAE has understood the game. From ensuring the biggest concerts, such as UNTOLD Dubai, to bringing the biggest sporting events, like Abu Dhabi Grand Prix 2025, there is a lot to see and do in the UAE all year round. You are not going to be bored. The ongoing Dubai Fitness Challenge keeps both tourists and residents engaged. Global Village Dubai lets people in the UAE get a taste of other countries at ease. The glamping and camping in Ras al Khaimah season has just started. The beautiful Sharjah, located at a decent distance from Dubai, is not being shrouded by Dubai’s charm. Instead, it focuses on enhancing the UAE’s cultural landscape. The UAE’s robust economy is also helping a lot in this direction and the country is also deepening its focus on experience-based tourism to lure more tourists interested in niche experiences.
In terms of the risks, economic fluctuations and sustainability concerns continue to disrupt global hospitality markets. The UAE is not immune to these issues but has a strong infrastructure in place to keep the system running efficiently. In terms of profitability and operational efficiency, the Emirati market is certainly making strides. The UAE has built itself a sector that manages to operate efficiently despite geopolitical and economic fluctuations.
UAE hospitality market outlook 2026-2030 and forecast summary
‘From branded residences to lifestyle-led concepts and experience-based holidays, the UAE is continuing to dominate regional hospitality deals.’
The UAE hospitality market 2025 is mature, deep and resilient. Hotel transactions are expected to remain active in the near future, too, as the country gradually transitions from a development-heavy cycle to a more balanced and investment-focused phase, as per Knight Frank. Outside of the bustling Dubai, Abu Dhabi and Ras al Khaimah are emerging as ‘complementary investment destinations’, luring people from different parts of the globe for a beautiful experience.
If Dubai’s global appeal is taken into consideration, 11.17 million international visitors reached the Emirate in the January to July 2025 period, up 5.2% compared to the same period last year. This translates into 25.53 million occupied room nights. The tourists are coming from across the globe, including 27% from Mena, 15% from Eastern Europe and 15% from South Asia. In terms of upcoming hotels in Dubai, 12,861 rooms are in the pipeline, including 47% luxury, 21% upper scale and 24% upscale. The total supply could reach 165,339 rooms by 2030. Just recently the list of The World’s 50 Best Hotels 2025 emerged and three iconic hotels in Dubai made it into the list, including Atlantis The Royal, Jumeirah Marsa Al Arab and The Lana, Dorchester Collection, further highlighting the Emirate’s booming hospitality scene.
For the entirety of the UAE, the expected number of hotel rooms by the end of 2030 is 235,674. From branded residences to lifestyle-led concepts, the UAE is continuing to dominate regional hospitality deal activities.
UAE hospitality market 2025 in a nutshell
‘The UAE, a magnet for the global hospitality investors.’
There are a couple of key facts that support the UAE hospitality market to its core: global tourism appeal and established hospitality infrastructure. This Middle Eastern country is leaving no stone unturned in establishing itself as one of the most appealing tourist destinations. Starting from the sultry summer temperatures to the more feasible colder months of December and January, the UAE is keeping its tourism offerings intact all year round.
These days, the UAE is deepening its focus on experience-based tourism. There are multiple hotels in Dubai that offer all-inclusive packages, including theme park access, sumptuous meals, engaging experiences, relaxing spa rituals and comfortable rooms embedded in luxury. Most importantly, Dubai is no longer the only place that tempts the global tourists. Places like Ras al Khaimah, Abu Dhabi and Sharjah also lure tens of thousands of international visitors each year. In its entirety, this is just the beginning of a beautiful journey for the UAE hospitality market.
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