Tall & Urban News

In the first half of 2024, Dubai delivered over 2,700 new hotel rooms, with an additional 10,100 rooms expected to be delivered by the end of 2025, according to research by Cavendish Maxwell, as stated in Khaleej Times. The city has completed 12 hotels between January and June 2024, bringing its total to 716 establishments with nearly 149,750 rooms. High-end accommodations continue to dominate the hospitality market, with 67% of inventory classified as luxury, upper upscale, or upscale. Additionally, four-star hotels saw significant growth, adding 436 rooms to the market, a 216% increase from 2023.  A total of 1,681 new five-star rooms were added, marking a 111% rise compared to the same period last year. The market continues to trend towards premium offerings, driven by the increasing demand for upscale experiences.

Dubai’s occupancy rate remained stable during the first half of 2024 with a rate of 78%, surpassing pre-COVID levels.  Luxury and upper midscale segments demonstrated the most significant gains. Meanwhile, Abu Dhabi City hotels achieved an impressive 83% occupancy, up from 76% in 2023, while resorts in Fujairah, Ras Al Khaimah, and Abu Dhabi reached 72-76% occupancy. The data shows that the UAE's overall hospitality market continues to thrive, with each region making gains in terms of occupancy. As Dubai’s tourism market rebounds, the continued increase in room supply and the push toward higher-end hotels reflect both the growth of the sector and the city’s appeal to international tourists.

Another marker for 2024 is that the average daily rates (ADR) for Dubai hotels rose to Dh720, the highest in six years, reflecting a 4.6% increase from the previous year. Upper and upper midscale hotels saw the largest jumps in ADR, with 10% and 7% increases, respectively. ADRs in other emirate cities also saw considerable gains: Abu Dhabi rose 11% to Dh341 for city hotels, and Ras Al Khaimah hit Dh591, also increasing by 11%. Fujairah followed with a 3% rise to Dh368. This upward trend in room rates reflects both the growing demand for higher-end accommodations and the success of the UAE’s tourism sector in attracting visitors from around the world.

Learn more about this story at Khaleej Times.