During the first nine months of 2025, hotel revenues in Dubai reached approximately 13.11 billion dirhams, a rise from 11.63 billion dirhams during the same timeframe in the previous year, achieving growth of 12.7%. This increase is based on an analysis of average revenue per available room in the emirate and the number of nights booked.
Data from the Department of Economy and Tourism revealed that the total number of hotel nights reserved grew by 5%, totaling 32.7 million nights from January to the end of September, compared to 31.28 million nights over the same period last year. The average revenue per available room also saw an 8% increase, reaching 401 dirhams, up from 372 dirhams.
Hotels in Dubai recorded record earnings over the past period, establishing the emirate as a leading global market. This has led to increased competition among hotel groups striving to enhance their presence and market share to benefit from the rising tourist influx from various sectors.
The data indicated that by the end of September, Dubai’s hotel capacity stood at 152,340 rooms across 819 hotels and apartment establishments, compared to 152,040 rooms at the end of September 2024.
According to the department’s monthly report, five-star hotel rooms accounted for 36% of the total hotel market in Dubai, with 54,310 rooms across 169 establishments. Four-star rooms followed with 28%, totaling 43,200 rooms across 194 establishments. Hotels rated three stars and below comprised 19% of the market, with over 29,200 rooms across 276 establishments, while serviced apartments numbered 25,400 across 180 properties.
The report also highlighted that the average occupancy rate in all operational establishments in Dubai reached 79%, up from 76% during the same period last year, which reflects increased tourism flows from various markets.
Dubai’s hotels have maintained an upward trajectory across all key indicators, including revenue per available room, average daily rate, number of nights booked, capacity, and the number of establishments. Future performance predictions for the hotel sector in Dubai remain optimistic, as this upward trend is expected to continue, supported by global events hosted in the city and Dubai’s status as a preferred tourist destination attracting visitors worldwide.
This remarkable performance can be directly attributed to Dubai’s ambitious tourism vision, which emphasizes diversifying tourism products and enhancing hotel service quality in line with global hospitality standards. Ongoing investments in tourism infrastructure and air travel have played a crucial role in supporting visitor flows and easing access to the city, positioning Dubai as a global model for managing and developing the hotel sector, balancing sustainable tourism expansion and innovation in the hospitality experience.