213,900 Hotel Rooms in the Country
The hospitality sector in the UAE is experiencing a surge in investment, driven by double-digit growth in key performance metrics such as revenue per available room (RevPAR), average daily rate (ADR), and occupancy rates. This growth reflects a mature market and an increase in hotel transactions, as indicated by a report from Knight Frank.
According to the report’s data, RevPAR and ADR in the UAE rose by 11.9% year-on-year over the 12 months leading up to August 2025.
Abu Dhabi led this growth, with a 24% increase in RevPAR and a 20.2% rise in ADR. Dubai followed with a revenue growth of 10.1%, while Ras Al Khaimah saw a 10% rise. Nationwide, occupancy rates increased to 78.5%, marking a 4% improvement compared to the previous year.
As for hotel supply, the UAE currently boasts 213,928 hotel rooms, with projections estimating that the total will reach 217,853 by the end of 2025, and 235,674 rooms across 1,184 hotels by 2030. Future development is largely focused on the luxury and upscale segments, with 43% of forthcoming projects classified as luxury. The current room supply consists of 26% upscale, 22% luxury, and 21% “upper upscale” categories.
Dubai remains the primary hotel market in the UAE, bolstered by long-term growth strategies such as the “D33 Economic Agenda” and the “Dubai Urban Master Plan 2040.” The emirate currently has 165,339 existing and planned hotel rooms.
Other key markets include Abu Dhabi with 37,016 rooms, Sharjah with 14,478 rooms, and Ras Al Khaimah with 11,902 rooms.
According to Faisal Durrani, Partner and Head of Research for the MENA region, the hospitality sector in the UAE continues to progress robustly, with a record number of tourists visiting Dubai, illustrating the emirate’s rapid rise as one of the most visited cities globally.
He added, “The UAE’s hotel investment market is entering a new phase of maturity in 2025, particularly in Dubai, where investor focus is shifting from development-driven expansion to acquisitions and asset re-positioning. This shift indicates a more sophisticated investment landscape resulting from years of rapid growth and increasing institutional capital.”
Osama Qudairi, Partner and Head of Hospitality, Tourism, and Leisure Consulting in the MENA region, noted, “In addition to Dubai, Abu Dhabi and Ras Al Khaimah are emerging as investment destinations offering numerous opportunities in entertainment and tourism projects.”
The report highlighted Dubai’s global appeal in maintaining strong performance metrics.
In 2024, Dubai ranked seventh worldwide in visitor numbers, with 18.2 million tourists, retaining its status as the world’s most popular destination on TripAdvisor for three consecutive years. Dubai International Airport also set a record, accommodating 92.3 million passengers, bolstering the emirate’s position as a major transit hub.
James Warin, Partner in the Capital Markets division for Hospitality and Leisure in the MENA region, stated, “Dubai continues to dominate regional deal activity, supported by its global tourism appeal and robust hotel infrastructure.”
The mature UAE hospitality market is attracting a broader range of investors—from regional family offices to international investors—seeking long-term value through operational improvements and partnerships with established brands.
Moreover, the rise of branded residential projects and lifestyle-oriented concepts is further diversifying the investment landscape.