Dubai is set for 11,300 new hotel rooms by 2027

Dubai’s hotel sector is set to expand significantly, with 4,620 new rooms opening in 2025 and a total of 11,300 by 2027, according to Cavendish Maxwell.

The city added 4,255 rooms in 2024, bringing its total inventory to 151,245 across 724 hotels. By 2027, this number is expected to rise to 162,600 rooms across 769 hotels.

Luxury accommodations continue to dominate, with nearly 70% of new supply in the high-end segment.

Dubai’s tourism sector experienced strong growth in 2024, welcoming 18.7 million visitors, a 9.1% increase compared to the previous year. Dubai International Airport set a new record with 92.3 million passengers, reinforcing the city’s position as a global travel hub.

Hotel occupancy rose to 78% in 2024, with the luxury and upper midscale segments seeing the most significant gains. The average daily rate in Dubai reached AED 690 ($188), reflecting pricing stability in the hospitality market.

Revenue per available room grew by 1.3%, driven primarily by increased occupancy.

Elsewhere in the UAE, Abu Dhabi saw a 14.5% increase in ADR due to strong corporate travel demand. Ras Al Khaimah’s ADR rose by 14%, supported by hotel renovations and new openings, while Fujairah recorded a 4% increase amid government-led tourism initiatives.

Dubai’s hospitality sector remains on a strong upward trajectory, reinforcing its status as a leading destination for tourism, business, and investment.