- UAE hotels welcomed millions of guests, increased occupancy, revenue, and room inventory across the country
In the first nine months of 2025, the experts showed that the UAE’s hospitality sector continued its strong upward trajectory, with hotels welcoming 23.27 million guests – up 4.9 percent as against to the same period in 2024 – resulting in greater than 79.3 million hotel room nights booked. No doubt, the UAE ranked among the world’s top 7.0 destinations for international tourist spending. Hotel revenues for the first nine months of the year saw a notable rise of 7.2 percent, surpassing AED35.9 billion ($9.78 billion).
| Real GDP Growth in Advanced Economies (%) | |||||
|---|---|---|---|---|---|
| Details | 2022 | 2023 | 2024 | 2025f | 2026f |
| Global | 3.6 | 3.5 | 3.3 | 3.0 | 3.1 |
| AEs | 2.9 | 1.7 | 1.8 | 1.5 | 1.6 |
| US | 2.5 | 2.9 | 2.8 | 1.9 | 2.0 |
| Euro area | 3.5 | 0.4 | 0.9 | 1.0 | 1.2 |
| UK | 4.8 | 0.4 | 1.1 | 1.2 | 1.4 |
| Japan | 0.9 | 1.5 | 0.1 | 0.7 | 0.5 |
Concurrently, across the UAE the number of available hotel rooms grew to 216,248, distributed across 1,246 hotel establishments. Hotel occupancy rates climbed to 79.2 percent, up 1.8 percent, driven by strong global visitor numbers and growth in local tourism. The average length of stay grew from 3.38 to 3.41 nights, showing that visitors are engaging more deeply with the country’s diverse tourism offerings. Simultaneously, the number of occupied rooms grew by 3.5 percent to stand 46.17 million. The Average Daily Rate (ADR) also rose by 4.2 percent, from AED534 to AED557, signalling improved yield management and sustained strong demand across all market segments. The UAE’s tourism sector also registered remarkable achievements, earning foreign recognition for its performance excellence. On the other hand the hotel market’s revenue worldwide in this year was expected to exceed 450 billion U.S. dollars, explaining a rise over the last year.
Worldwide hotel occupancy rates have also seen growth over the last years, rebounding back to pre-pandemic levels. In this year, it was also analyzed that the worldwide hospitality industry is experiencing strong growth, with the hotel sector alone valued at an estimated $570 billion and employing over 173 million people. Major trends include a significant guest preference for technology such as contactless payments (49 percent), self-service options (73 percent), and AI-driven services. Furthermore, the industry is adapting to a demand for personalized, sustainable, and wellness-focused experiences, while simultaneously facing problems like labor crisis. The Experts also expect that the UAE is set to expand its hotel inventory by greater than 23,000 rooms by 2030, with Dubai driving over half of the new supply. In the first half of 2025, it is also important to note that Dubai’s tourism sector continued its robust performance, welcoming 9.9 million international overnight visitors, a 6.1 percent rise as against to 9.3 million during the same period in 2024. This steady growth underscores Dubai’s continuing appeal as a leading worldwide destination.
As a top global tourist hub, the UAE’s pipeline continues to skew towards upscale and luxury assets. Of the existing inventory, 26 percent is classified as upscale, 22 percent as luxury, and 21 percent as upper-upscale. The country by the end of this year, is expected to reach 217,853 rooms — an annual rise of 3 percent — before climbing to 1,184 hotels nationwide by 2030. Outside Dubai, statistics showed that Abu Dhabi presently houses 37,016 keys, Sharjah 14,478, and Ras Al Khaimah 11,902. In August 2025, 55.9 percent of the upcoming national hotel pipeline sits in Dubai.
Furthermore, the expansion is expected to deliver a sizable employment uplift. Based on career opportunities ratios — 1.5 jobs per luxury room, 1 per midscale room, and 0.5 per budget room, experts estimate between 11,500 and 34,500 new positions will be generated across the UAE’s hospitality sector in the coming years. Market experts also recorded that a shift in financier behaviour. Rather than pursuing development-heavy growth, financiers are now targeting acquisitions and asset repositioning as the next phase of maturity takes hold. No doubt, hotel transactions are entering a new phase of maturity, chiefly in Dubai, where attention is shifting toward strategic acquisitions. It reflects a deeper, more sophisticated investment landscape shaped by years of rapid expansion.