Dubai’s hospitality sector delivered a strong performance in 2025, reflecting the emirate’s sustained tourism growth and global appeal. According to figures released by the Dubai Department of Economy and Tourism, the city’s hotel inventory reached 154,264 rooms across 827 establishments by the end of December, placing Dubai among the world’s leading destinations in terms of room supply.
Occupancy and Revenue Rise
Dubai hotels recorded an average occupancy rate of 80.7% in 2025, up from 78.2% the previous year. Total occupied room nights increased to 44.85 million, reflecting a 4% year-on-year rise, while the average length of stay held steady at 3.7 nights.
Financial indicators also strengthened. The average daily rate (ADR) rose to AED579, an 8% increase over 2024, while revenue per available room (RevPAR) grew 11% to AED467. These figures underline strong demand across leisure and business travel segments.
New Openings Boost Capacity
The sector’s growth was supported by a number of high-profile hotel openings across categories and locations. New additions included Ciel Dubai Marina, Jumeirah Marsa Al Arab, Mandarin Oriental Downtown, Dubai, Cheval Maison – Expo City, and Vida Dubai Mall. These properties span luxury, lifestyle, and serviced apartment segments, expanding the city’s accommodation mix for different traveller profiles.
Strategic Initiatives for Future Growth
To sustain expansion, DET launched initiatives such as the Hotel Incentive Programme, aimed at encouraging development in emerging districts including Dubai South and Palm Jebel Ali. The city also announced a contactless guest check-in solution to streamline arrivals and enhance visitor convenience.
Outlook
With strong occupancy, rising revenues, and a pipeline of new openings, Dubai’s hotel sector continues to demonstrate resilience and momentum. The results position the emirate’s hospitality industry for continued growth as tourism demand and global connectivity expand in 2026 and beyond.
