Dubai.. New Year’s Eve records record occupancy and breaks the barrier of 2,000 dirhams per room

Dubai’s hotel sector recorded record performance during the month of December 2025, achieving the highest revenue per available room since 2007, driven by strong momentum in tourism demand during the holiday season, according to preliminary data issued by CoStar, the leading global provider of real estate market data and analysis.

The data showed that the hotel occupancy rate reached 84.3% during the month of December, an annual increase of 3.4%, which is the highest level recorded by the market in this month since 2006, while the average daily room price reached 1,042 AED, achieving a growth of 11.1% compared to the same period last year, thus recording its highest level during the year 2025.

Revenue per available room also rose to 878.19 dirhams, recording an annual increase of 15%.

Hotel performance reached its peak on New Year’s Eve, when the occupancy rate reached 94.1%, while the average room price jumped to 2,286 dirhams, and the revenue per available room rose to 2,151 dirhams, in a first of its kind in which both the average price and revenue per available room exceeded the 2,000 dirham barrier in the Dubai hotel market.

Hotels in Dubai also maintained strong performance levels over nine consecutive nights, starting on Tuesday, December 23, when the occupancy rate remained above 80%, while the average room price exceeded 1,000 dirhams throughout that period, which reflects the strength of demand and the sustainability of performance during the peak tourist season.