Dubai will add 2,000 luxury “5-star” rooms during 2025

The hotel market in Dubai witnessed the addition of about 2,000 luxury “five-star” rooms during the past year, according to data issued by the Department of Economy and Tourism in Dubai, a copy of which was obtained by Emirates Today.

According to these data, the number of five-star hotel rooms increased from about 54 thousand rooms at the end of 2024 to about 56 thousand rooms at the end of December 2025, while the share of hotel rooms in this category increased from 35% to 37% of the total size of the hotel market, whose capacity reached 154 thousand rooms by the end of 2025.

Based on this data, the luxury hotel market, classified within the “five-star” category, was able to achieve occupancy rates of 79% during the period between January and December 2025, compared to an occupancy rate of 76% in the previous year, at a time when luxury hotel rooms accounted for the vast majority of the new rooms that entered the market during the year 2025.

The Department of Economy and Tourism in Dubai said that the emirate has enhanced its attractiveness in 2025 thanks to a group of new openings of hotel establishments and strategic initiatives, as the hotel and hospitality sectors in the emirate recorded record results during the past year, which places Dubai in an advanced position compared to leading international cities such as: Bangkok, New York, Paris, and Singapore, and close to London in terms of the size of the total hotel capacity.

The department said in its report on the annual performance of the tourism sector: “The emirate witnessed the opening of a group of new projects for various categories and locations, including: (Sail Dubai Marina), in addition to (Jumeirah Marsa Al Arab), (Mandarin Oriental Downtown Dubai), (Chefal Maison – Expo City), and (Vida Dubai Mall).”

It is noteworthy that the Department of Economy and Tourism in Dubai launched an initiative that included new investment incentives to encourage investment in new hotel facilities in high-growth areas in Dubai to keep pace with the continuous increase in the number of international visitors. The initiative stipulates the return of 100% of the Dubai Municipality fee on room sales and the “tourism dirham” for hotel facilities, for a period of two years from the date of their opening and starting to receive guests.

According to the department, the initiative aims to meet the increasing demand for hotel establishments in areas witnessing significant growth, including: “Dubai South”, “Palm Jebel Ali”, “Dubai Parks”, and “Dubai Islands”, in light of the continued implementation of specific projects aimed at achieving the goals of the Dubai Economic Agenda D33.

Dubai received 19.5 million international tourists during the year 2025, and it concluded last year by receiving more than two million international visitors in one month for the first time, in December 2025, recording a growth of 6% on an annual basis.