The UAE's prosperity is largely based on tourism, which helps the UAE hotel industry generate a significant amount of revenue. Speaking about tourism, Dubai shines as a major travel destination, drawing tourists with its opulent way of life, recognizable skyscrapers, and a variety of fascinating activities.
This report aims to explore the statistical patterns that support the hotel industry's explosive growth in the United Arab Emirates and highlight its importance in propelling the country's economic development.

Market Overview

  1. The estimated size of the UAE hospitality market in 2024 is USD 7.37 billion, and it is expected to grow at a compound annual growth rate (CAGR) of 5.12% to USD 9.46 billion by 2029. Mordor Intelligence
  2. With plans for over 130 premium sites and nearly 34,000 rooms in the high-end sector in the upcoming years, revenue from luxury hotels accounts for the largest portion of total revenue in the current year. Mordor Intelligence
  3. There are 83 five-star hotel sites in the UAE, accounting for about 64% of the country's high-end pipeline. Mordor Intelligence
  4. ATM 2024 will feature a wide array of international hospitality brands, with a noteworthy 21% increase in exhibition space devoted to hotel brands, demonstrating a high level of interest and demand. TravelBizNews
  5. 68 properties are scheduled for completion in 2024, showing a trend towards quick delivery. There will be a significant price drop when the 27 locations open in 2024, then 7 in 2026, and 5 in 2026. Mordor Intelligence
  6. The UAE hotels hosted 19 million visitors in 2021, witnessing a growth of more than 29 per cent. moet
  7. It is anticipated that 1.69 million users will join during 2024 - 2028, and that by 2028, the user penetration rate will have increased from 18.2% in 2024 to 17.1%. Statista
  8. It is anticipated that the average revenue per user (ARPU) will stay at US$275.80. Statista
  9. In addition, it is anticipated that by 2028, online sales will account for 89% of the hotel industry's overall revenue. Statista
  10. In January through September, 20.2 million people stayed in hotels in the United Arab Emirates, a noteworthy 12% rise over the same period in 2022. National News
  11. The UAE's objectives to enhance the hospitality industry are supported by the medium-sized occupancy rate of 86%, which is driven by four-star accommodations. Mobility foresights

Occupancy Rates

  1. Having more than 55 hotels spread throughout important cities, Marriott, an American hospitality giant, has made a major impression in the United Arab Emirates. Mordor Intelligence
  2. From 2018 to 2019, the number of occupied room nights in Dubai hotels increased by roughly 6.5 %, exceeding 32 million occupied room nights in 2019. ncbi
  3. The hospitality sector in Ras Al Khaimah also performed well in occupancy rates in 2019, averaging at 74%. hoteliermiddleeast
  4. By 2021, Sharjah hoped to welcome over 10 million visitors. gulfnews
  5. By 2020, Dubai’s hotel inventory had reached approximately 127,000 hotel rooms. dubaidet
  6. The average occupancy rate in the United Arab Emirates increased by 0.9 percentage points over the prior year. At the same time, the nation's average daily rate (ADR) increased by 5.6%, resulting in an overall increase in revenue per available room (RevPAR) of 6.8%. CBRE
  7. Dubai experienced an increase of 155,000 hotel rooms during 2021. World Metrics
  8. According to Cavendish Maxwell’s hospitality sector 2024 market performance report, Dubai’s hotel room inventory is projected to reach approximately 161,218 rooms by the end of 2026. cavendishmaxwell
  9. Reflecting the UAE’s status as a global luxury destination, of the 213,928 existing hotel rooms, 26% are classified as upscale, 22% luxury, and 21% upper upscale. knightfrank
  10. In 2022, the hotel occupancy rate rose to 75%, indicating a notable 6% annual growth. National News
  11. With 145 four-star hotels out of 716 operational ones, Dubai's hotel industry offers 30,125 rooms in this category. Mobility foresights
  12. UAE's hotel industry maintains an over 80% occupancy rate, the highest in the Middle East, despite an increase in the number of rooms available. Mobility foresights
  13. Occupancy rates in 2022 were 73%, almost back to pre-pandemic levels of 75%. Dubai almost returned to its pre-pandemic levels.  Cavendish Maxwell
  14. By the end of 2023, Dubai's hospitality sector had surpassed pre-pandemic levels for the first time, with an amazing average occupancy of roughly 77%.  Cavendish Maxwell
  15. Dubai's occupancy rates rose 6.4% annually, with the Upscale and Upper Upscale segments experiencing the biggest increases, at 7.6% and 6.5%, respectively. In comparison to 2022, the Dubai Luxury sector experienced a 4.5% increase. Cavendish Maxwell

Revenue and Financial Performance

  1. The UAE's ADRs increased by 24.9% from the comparable 2019 figure as of March 2024. Higher ADRs in Sharjah (27.9%), Dubai (24.0%), Abu Dhabi (18.0%), Fujairah (11.1%), and Ras Al Khaimah (1.9%) were the main drivers of this growth. CBRE
  2. As a result, the RevPAR performance of these cities—Sharjah (34.3%), Dubai (22.3%), Abu Dhabi (19.7%), Fujairah (40.6%), and Ras Al Khaimah (3.0%)—surpassed their pre-pandemic levels for 2019. Furthermore, in the majority of the locations, citywide occupancy rates surpassed their pre-pandemic levels in 2019. CBRE
  3. The 2022  hospitality revenue helped the UAE to get a step closer to reaching the national goal of the We The UAE 2031 vision, which is to increase the sector's economic contribution to the nation to Dh450 billion by the end of the next ten years. National News
  4. According to official data, the "unforgettable stories" themed campaign has resulted in notable economic benefits for domestic tourism. Hotel revenues have reached Dh1.8 billion, a notable 20% increase over the Dh1.5 billion earned during the campaign's second edition. National News
  5. Tourism sector's contribution to the GDP has reached a total value of AED291 billion ($79.24 billion) in 2025. tradearabia
  6. By 2031, the plan hopes to bring in investments totaling AED 100 billion, increase the tourism sector's GDP contribution by AED 450 billion, and welcome 40 million hotel guests annually. Naturally, it also relates to D33, the Dubai Economic Agenda. Cavendish Maxwell

Tourism Trends and Visitor Statistics

  1. The United Arab Emirates' tourism sector got off to a great start in 2023 when Dubai was crowned the world's most popular travel destination, topping the leaderboard at the Tripadvisor Travellers' Choice Best of the Best Destination Awards. In the first half of 2023, the tourism sector's share of GDP was 10.14%. Mordor Intelligence
  2. Up 22.0% from the previous year to March 2024, Abu Dhabi saw a notable increase in hotel visitors, with a total of 1.30 million guests. CBRE
  3. Similarly, Dubai experienced strong growth, receiving 5.18 million foreign visitors in the same period, up 9.1% from 2019 and 10.9% year over year. CBRE
  4. The number of overnight visitors to Dubai increased to 17.15 million in 2023, as reported by the Dubai Department of Economy and Tourism (DET), along with the average duration of stay. TravelBizNews

Opening of Upcoming 14 Hotels in the UAE in 2024

  1. Al Nawras Island, LXR Hotels & Resorts: 80 villas, Royal Villa, fitness centre, beach club, spa, two dining options, two bars, three pools, tennis/padel courts, opening 2024 TBC. Fact Magazine
  2. Opening in early 2024, Ciel is the tallest hotel with 1,042 rooms (150 suites), restaurants, a Sunset Lounge, a spa, a health club, an observation deck, a bar, and an infinity pool. Fact Magazine
  3. 60 luxury suites, an animal farm, interactive farming, reconnecting with nature, and camel races are all features of Cloud7 AlSawan Camp. Fact Magazine
  4. Cloud7 Jebel Jais: 30 stone units, a hub for ecotourism, a mountainous landscape, and outdoor activities. Fact Magazine
  5. Set to open in 2026, Four Seasons Resort Ajman at Al Zorah will take over the current site of The Oberoi Beach Resort, Al Zorah. factsaudi
  6. Earth Mangroves Abu Dhabi offers farm-to-table dining, fresh cocktails, yoga, meditation, modern interior design, and 41 bungalows with paddleboarding and kayaking. Fact Magazine
  7. Earth Shore Marjan Island: Beachfront lifestyle hotel with resort accommodations, duplexes, sky suites, party atmosphere, spa, pool, social hub, and neighbourhood restaurant. Fact Magazine
  8. The Jumeirah Marsa Al Arab features multiple pools, integrated wellness, leisure destinations, a four-in-one restaurant concept, 303 rooms, 84 suites, and 82 serviced residences. Fact Magazine
  9. Opening in late 2026, Hilton Marjan Island Beach Resort & Spa will feature 350 keys. factsaudi
  10. Hotel Khorfakkan, Autograph Collection: 75 luxurious rooms, restaurants, spa, gym, retail stores, water park, yacht club, and residences. Fact Magazine
  11. The Liwa Hotel, Autograph Collection, features 66 guestrooms and suites, three-bedroom villas, three dining options, a spa, a kids' club, a fitness centre, and a swimming pool. Fact Magazine
  12. A portion of Sharjah Safari, LUX Al Bridi Resort offers studios to three-bedroom apartments, a kids' club, a plant-based restaurant, a spa, and a wildlife safari. Fact Magazine
  13. The 45-room LUX Al Jabal Resort is a beachfront hideaway with views of the Gulf of Oman, the slopes of the Soueifa Mountains, and some rooms with private pools. Fact Magazine
  14. Mama Shelter Dubai features 201 rooms, 80 apartments, a swimming pool, a basketball court, a volleyball court, a coffee shop, a rooftop bar and DJs. Fact Magazine

Technological Innovations and Digital Trends

  1. With the help of Dubai's DET, the Jumeirah Group introduces Jumeirah Mobile Check-In, which uses digital and biometric technology to expedite check-in by up to 10 minutes. Mobility foresights

Look Back on UAE Hotel Embellishments and Their Evolution

  1. In 2021, there was a 6.2% net increase in hotel establishments, compared to a decrease of 3 hotel apartments. Cavendish Maxwell
  2. There was a 6.5% increase in 2022 compared to 2021, with the addition of 43 hotels and 6 apartments. Cavendish Maxwell
  3. Dubai has 820 hospitality establishments in total as of 2023, comprising 624 hotels and 196 apartments, reflecting a slight increase of 2.0% annually. Cavendish Maxwell
  4. In 2021, there was a notable rise in the quantity of hotel rooms, with the recovery period experiencing the highest growth rate of 8.7%. Cavendish Maxwell
  5. With a 6.2% increase, momentum continued in 2022, reaching 146,996 rooms overall. Cavendish Maxwell
  6. A more moderate 2.2% increase occurred in 2023, bringing the total inventory of rooms to 149,685. Cavendish Maxwell
  7. In 2023, the number of rooms in luxury hotel apartments increased at the fastest annual rate, rising by 5.6%.  Cavendish Maxwell
  8. Four-star hotels saw a modest 1.8% increase, while five-star hotels saw a 4.5% growth. Cavendish Maxwell
  9. In 2023, the Luxury, Upper Upscale, and Upscale classes comprise 67% of the available room supply, whereas the Upper Midscale and Midscale segments make up roughly 27% of the entire inventory. Cavendish Maxwell
  10. Around 73% of the new supply during the year came from the Upper Upscale and Luxury segments. Cavendish Maxwell
  11. Atlantis The Royal, the Cheval Maison, the NH Collection Dubai the Palm, and the voco Dubai, The Palm were among the exciting new openings in 2023. About 1,600 of the new rooms added by The Palm are included in the current supply increase. Cavendish Maxwell

Impact of Global Events

  1. The forthcoming Arabian Travel Market (ATM), which is slated to take place at the Dubai World Trade Centre from May 6 to 9, is anticipated to be a significant occasion for those involved in the hospitality industry. TravelBizNews

Competitive Landscape in the UAE Hotel Industry

  1. Leading the charge is the Kleindienst Group, whose project, The Heart of Europe, is a luxury resort development set among the World Islands in Dubai that will include 16 hotels and resorts modelled after European cities. Mordor Intelligence
  2. DAMAC Group, Emmar Hospitality, and Jumeirah Group are 3 prominent domestic hospitality groups in the United Arab Emirates that operate across multiple Emirates. Mordor Intelligence

Future Outlook and Projections

  1. Hospitality Management Holding (HMH) plans to open four new hotels in Saudi Arabia by 2026, adding approximately 1,314 keys to its regional portfolio, with the Corp Madinah Al Naqaa Hotel alone set to add around 600 keys in Q1 2026. gulfconstructiononline
  2. With 138 rooms and two restaurants, IHG Hotels & Resorts debuted Voco Dubai. Mordor Intelligence
  3. Furthermore, 23 projects are either scheduled after 2026 or have no specified date of completion. Mordor Intelligence
  4. In partnership with RDK Tourism Investment, Marriott International will open four new properties in the UAE within the next three years, adding more than 700 rooms. Mobility foresights
  5. Buildings owned by RDK Tourism Investment will be converted into four new hotels, one of which will be a 114-room Marriott Hotels & Resorts beachfront resort in Abu Dhabi. Mobility foresights
  6. In 2026, the projected hotel room openings for middle east is 54,238 rooms. hotelmanagement
  7. According to the estimates, 31 new hotels are anticipated to open in Dubai in 2024, and 16 more are anticipated to join the mix in 2026. By the end of 2024, this equates to a cumulative total of 851, and by the end of 2026, it is 867. Cavendish Maxwell
  8. A crucial disclaimer is that projects that have already opened, like the "One & Only One Za'abeel" (370 keys – Luxury), the "Mercure Dubai Deira" (152 keys – Upper Midscale), and "The Lana Dubai Dorchester Collection" (225 keys – Luxury), are not included in the 2024 figures. Cavendish Maxwell
  9. In line with the objectives of the National Tourism Strategy 2031, the "unforgettable stories" initiative seeks to highlight the UAE's distinctive tourism attractions, winter experiences, rich cultural legacy, and mesmerizing natural landscapes. By 2031, this plan hopes to bring 40 million hotel visitors and Dh100 billion in tourism expenditures to the United Arab Emirates. National News
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