Dubai's Hospitality Sector Poised for Growth with 11,300 New Hotel Rooms
Expansion set to create 15,000 direct jobs and enhance economic opportunities across various sectors.
Dubai is set to see the introduction of over 11,300 new hotel rooms by 2027, with approximately 4,620 expected to become available this year, as per a report by Cavendish Maxwell.
This expansion is anticipated to facilitate the creation of around 15,000 direct hospitality jobs and further stimulate employment across multiple sectors including retail, transport, and food & beverage, as well as other ancillary industries over the next two years.
Iftikhar Hamdani, area general manager of Bahi Ajman Palace and Coral Beach Resort Sharjah, emphasized the broader economic impact of this expansion, stating, "For every hotel role created, 2-3 indirect jobs emerge in retail, logistics, entertainment, and tourism services." He further noted that hotels usually require between 1.2 and 1.5 employees per room based on service levels and amenities, implying that a realistic average for Dubai's high-service market would be around 1.3 employees per room.
Additionally, he highlighted that the growth in hospitality likely spurs a 2.5 to 3-fold increase in jobs in ancillary sectors, projecting the creation of 36,000 to 50,000 indirect roles across various support industries such as suppliers and maintenance service providers.
According to the report, the total new supply expected in 2025 is projected at 4,619 rooms across 20 hotels, with the luxury segment alone contributing 1,685 rooms in eight new hotels, comprising 36 percent of the new supply.
The upper upscale segment will add 1,520 rooms across six establishments.
The surge in hotel rooms correlates with a 9.1 percent growth in overnight visitors to Dubai, rising from 17.15 million in 2023, further entrenching the city's status as a premier global tourist destination.
In 2024, Dubai's hotel sector expanded with an additional 4,255 rooms from 19 new hotels, revealing a nearly 3 percent increase year-on-year.
As of December 2024, the total number of hospitality establishments in Dubai rose to 724, providing 151,245 keys for guests.
High-end accommodation remains prominent, with nearly 70 percent of the total room supply classified as luxury or upper upscale.
The continuation of this trend is expected, as 70 percent of the new supply anticipated for 2025 will also fall within these premium categories.
In terms of economic contribution, tourism in 2024 generated Dh236 billion for the UAE, an increase from Dh220 billion in the previous year, making up 12 percent of the national GDP. Dubai's hotel occupancy figures indicate a steady performance, reaching 78 percent in 2024, showing a slight increase from the previous year.
The average daily rates for hotel rooms in Dubai stood at Dh690 in 2024, reflecting a minor increase of 0.2 percent from 2023, indicating a level of stability in pricing within the hospitality market.
This expansion is anticipated to facilitate the creation of around 15,000 direct hospitality jobs and further stimulate employment across multiple sectors including retail, transport, and food & beverage, as well as other ancillary industries over the next two years.
Iftikhar Hamdani, area general manager of Bahi Ajman Palace and Coral Beach Resort Sharjah, emphasized the broader economic impact of this expansion, stating, "For every hotel role created, 2-3 indirect jobs emerge in retail, logistics, entertainment, and tourism services." He further noted that hotels usually require between 1.2 and 1.5 employees per room based on service levels and amenities, implying that a realistic average for Dubai's high-service market would be around 1.3 employees per room.
Additionally, he highlighted that the growth in hospitality likely spurs a 2.5 to 3-fold increase in jobs in ancillary sectors, projecting the creation of 36,000 to 50,000 indirect roles across various support industries such as suppliers and maintenance service providers.
According to the report, the total new supply expected in 2025 is projected at 4,619 rooms across 20 hotels, with the luxury segment alone contributing 1,685 rooms in eight new hotels, comprising 36 percent of the new supply.
The upper upscale segment will add 1,520 rooms across six establishments.
The surge in hotel rooms correlates with a 9.1 percent growth in overnight visitors to Dubai, rising from 17.15 million in 2023, further entrenching the city's status as a premier global tourist destination.
In 2024, Dubai's hotel sector expanded with an additional 4,255 rooms from 19 new hotels, revealing a nearly 3 percent increase year-on-year.
As of December 2024, the total number of hospitality establishments in Dubai rose to 724, providing 151,245 keys for guests.
High-end accommodation remains prominent, with nearly 70 percent of the total room supply classified as luxury or upper upscale.
The continuation of this trend is expected, as 70 percent of the new supply anticipated for 2025 will also fall within these premium categories.
In terms of economic contribution, tourism in 2024 generated Dh236 billion for the UAE, an increase from Dh220 billion in the previous year, making up 12 percent of the national GDP. Dubai's hotel occupancy figures indicate a steady performance, reaching 78 percent in 2024, showing a slight increase from the previous year.
The average daily rates for hotel rooms in Dubai stood at Dh690 in 2024, reflecting a minor increase of 0.2 percent from 2023, indicating a level of stability in pricing within the hospitality market.
