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8h ago

UAE Hotels Post Double-Digit Gains as Luxury-Weighted Pipeline Grows

Knight Frank says a maturing market is drawing investors toward acquisitions.

Dubai remains the largest market, accounting for nearly 56 per cent of upcoming rooms, followed by Abu Dhabi, Sharjah, and Ras Al Khaimah. Image: Shutterstock
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Overview

  • RevPAR and ADR rose 11.9% in the year to August and occupancy reached 78.5%, with Abu Dhabi leading growth as RevPAR jumped 24% and ADR 20.2%.
  • The UAE’s hotel inventory stands at about 213,928 keys and is projected to reach 217,853 by end-2025 and 235,674 by 2030.
  • Just over 23,000 rooms are under development, 55.9% of which are in Dubai, where 12,861 rooms are slated to lift total supply to 165,339 by 2030.
  • Future supply remains skewed to the high end, with 43% of upcoming rooms in the luxury segment and most existing stock in upscale categories.
  • Knight Frank expects active transactions as investors pivot from development to acquisitions and asset repositioning, with the expansion projected to add roughly 11,500–34,500 hospitality jobs.