The Knight Frank UAE Hospitality Market Review – Autumn 2025 highlights key trends shaping the sector:
- Revenue per available room (RevPAR) and average daily rates (ADR) rose by 11.9% year-on-year.
- Abu Dhabi led with a 24% increase in RevPAR and a 20.2% rise in ADR.
- Dubai saw 10.1% RevPAR growth, closely matched by Ras Al Khaimah at 10%.
- Nationwide occupancy averaged 78.5%, up 4%.
- The UAE currently has 213,928 hotel rooms, with 26% upscale, 22% luxury, and 21% upper upscale.
- Room inventory is expected to reach 217,853 by end-2025 and 235,674 by 2030, with 43% of upcoming supply in the luxury segment.
- Dubai accounts for 55.9% of upcoming hotel keys, followed by Abu Dhabi (37,016 keys), Sharjah (14,478), and Ras Al Khaimah (11,902).
What does this mean for inbound MICE from India and the Middle East?
The growth signals strong demand and expanding capacity, offering more venue choices—especially outside Dubai—in markets like Abu Dhabi, Sharjah, and Ras Al Khaimah. This diversification could benefit planners seeking variety and scale.
However, increased inventory and rising ADRs bring competitive challenges. Older properties may need to lower prices to compete with newer luxury hotels targeting premium segments. This dynamic risks pricing out cost-sensitive MICE groups or forcing planners to seek more value-driven options.
Sustained demand from India and Middle East markets will require careful balancing of premium offerings and competitive pricing to keep the UAE an accessible and attractive MICE destination.
