Dubai’s hospitality sector is set for an expansion, with the number of hotel rooms expected to reach 154,000 by the end of 2023. This projection was made by Knight Frank anticipates an additional 9,200 rooms to be added to the current inventory by the close of 2023. This represents a substantial 6.4% increase from the previous year.
The United Arab Emirates (UAE) hotel industry continues to grow, with Dubai emerging as a key player. The city has not only been named the world’s most popular destination for two consecutive years by Trip Advisor, but it also boasts the highest occupancy levels globally, with a rate of 78% recorded in the first half of 2023.
Major industry players are driving this growth. Accor leads the pack with 71,820 existing rooms and an additional 49,510 rooms expected to be completed by 2030. Marriott International follows closely with 63,790 existing rooms and 52,790 planned. Other contributors include IHG Hotels & Resorts, Hilton Worldwide, Radisson Hotels, and Rotana Hotels, all of which have thousands of rooms currently available and more in development.
Dubai dominates the UAE’s hospitality landscape, accounting for 70% of the country’s upcoming supply. In the first half of 2023 alone, the city welcomed 8.6 million tourists, marking a significant 20% increase from 2022.
Internationally branded hotels make up 67% of Dubai’s existing supply, underlining the city’s global appeal. Furthermore, 70% of the under-construction and final planning supply in Dubai belongs to the luxury and upper upscale hotel segments, catering to discerning travelers.
With an existing supply of 207,200 hotel rooms and an additional 24,500 rooms in various stages of development, Dubai continues to solidify its global leadership in the hospitality sector. According to STR data cited by Knight Frank, the Dubai market recorded a 0.8% increase in RevPAR compared to July 2022, driven by a 6.8% increase in occupancy but offset by a 5.6% decrease in ADR.
In conclusion, Dubai’s hospitality sector is set for significant growth, with the number of hotel rooms expected to reach 154,000 by the end of 2023. This expansion underscores Dubai’s enduring appeal as a global tourist hotspot and its continued dominance in the UAE’s hospitality landscape.