Khaberni - Global real estate consultancy Knight Frank expects the hotel market in Dubai to increase from 152.4 thousand rooms to 165.4 thousand hotel rooms by 2030, with about 13 thousand new rooms expected to be added, indicating that Dubai is a major hub in the hospitality sector in the UAE, supported by its "D33" economic agenda and the 2040 Urban Plan.
The company explained in a report, obtained by "Emirates Today", that for future supply, 47% of hotel rooms under construction in Dubai are luxury, and 24% are upscale.
It mentioned that the hotel transactions market in the UAE has entered a new phase of maturity in 2025, especially in Dubai, where the focus of investors has shifted from expansion based on development to strategic acquisitions and asset reorganization, noting that this development reflects a more sophisticated investment landscape shaped by years of rapid growth and increased institutional capital.
Knight Frank also predicted that the total number of hotel rooms in the UAE will reach 235,674 rooms by 2030, as the sector continues to achieve strong growth and attract more capital, noting that an increasing group of regional and international investors are drawn to the UAE market with strong growth fundamentals.
The company reported that the hospitality sector in the UAE achieved strong performance again during the year ending in August, with both RevPAR and ADR increasing by 11.9% year-on-year. RevPAR in Abu Dhabi increased by 24% and ADR by 20.2% year-on-year, while Dubai, the largest hospitality market in the UAE, saw a RevPAR increase of 10.1%, closely followed by Ras Al Khaimah with a slight difference at 10%, and the average hotel occupancy across the UAE increased by 4% over the year until August, reaching 78.5%.
The Knight Frank report confirmed that the hospitality sector in the UAE continues to grow, with the record numbers of tourists arriving in cities like Dubai as proof of the emirate's rise as one of the most visited cities in the world.
It also showed that reflecting the UAE's status as a global luxury destination, 26% of the existing 213,928 hotel rooms in the country are classified as luxury, and 21% as upscale.
It is expected that the number of rooms in the UAE will rise to 217,853 rooms by the end of 2025, an increase of 3% from 2024, with future projects still focusing on the higher segment of the market, where the luxury hotel sector represents 43% of the upcoming supply.
