165.4 thousand hotel rooms in Dubai by 2030

The international real estate consulting firm Knight Frank expects that the size of the hotel market in Dubai will increase from 152.4 thousand rooms to 165.4 thousand hotel rooms in 2030, with the addition of about 13 thousand new rooms expected, noting that Dubai is a major center in the hospitality sector in the UAE, supported by its “D33” economic agenda and its 2040 urban plan.

The company explained in a report, a copy of which was obtained by Emirates Today, that regarding future supply, 47% of the hotel rooms under construction in Dubai are luxury, and 24% are high-end.

She stated that the hotel transactions market in the Emirates entered a new stage of maturity in 2025, especially in Dubai, where investors’ focus shifted from development-based expansion to strategic acquisitions and asset reorganization, pointing out that this development reflects a more sophisticated investment landscape, the features of which were formed thanks to years of rapid growth and increasing institutional capital.

Knight Frank also expected that the total number of hotel rooms in the UAE would reach 235,674 rooms by 2030, as the sector continues to achieve strong growth and attract more capital, noting that a growing group of regional and international investors are attracted to the UAE market, which is characterized by strong growth fundamentals.

The company reported that the hospitality sector in the Emirates achieved another strong performance during the year ending in August, with both available room revenue and average daily rate increasing by 11.9% on an annual basis. Available room revenue in Abu Dhabi increased by 24% and the average daily price grew by 20.2% on an annual basis, while Dubai, the largest hospitality market in the Emirates, recorded a growth in available room revenue of 10.1%, followed by Ras Al Khaimah is narrowly ahead at 10%, and average hotel occupancy across the Emirates rose 4% during the year to August, reaching 78.5%.

The Knight Frank report confirmed that the hospitality sector in the UAE is witnessing continuous growth, as the record numbers of tourists arriving to cities such as Dubai are evidence of the emirate’s rise as one of the most visited cities in the world.

He stated that, as a reflection of the UAE’s status as a global luxury destination, 26% of the 213,928 existing hotel rooms in the country are classified as luxury hotels, and 21% as high-end hotels.

It is expected that the number of rooms in the Emirates will rise to 217,853 rooms by the end of 2025, an increase of 3% from 2024, while future projects still focus on the upper segment of the market, as the luxury hotel sector represents 43% of the upcoming supply.

• The number of hotel rooms in the Emirates increased to 235.6 thousand rooms.