Dubai hotel occupancy hits 81% as visitors surge

Dubai’s hotel occupancy rose to 81% in the first half of 2025, marking a 4.5-point increase year-on-year, driven by a 6.1% rise in visitor numbers to nearly 10 million. 

 

This growth in demand is detailed in Cavendish Maxwell’s H1 2025 Dubai hospitality market performance report, which also recorded a 5.5% increase in the average daily rate (ADR), reaching AED745 (US$203). 

 

Hotel supply in Dubai now stands at 157,144 keys across 748 properties, with nearly 900 new rooms and five additional hotels added in the first six months.

 

International arrivals played a key role in this boost, with visitor numbers climbing 6.1% between January and June, according to the real estate advisory group’s research. 

 

Western Europe remained the top source market, representing 21% of the 9.9 million international guests, an increase of 12% compared to the same period last year.

 

CIS and Eastern Europe made up 15.4% (up 11%), while GCC arrivals reached 15.3% (up 19%). Visitor volumes from Australasia and the Americas also recorded double-digit growth, up 14% and 12% respectively.

 

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Dubai came close to hitting the 10 million milestone, with air traffic disruptions in May and June holding back figures. 

 

Even so, Dubai International Airport (DXB) handled 46 million passengers in H1, up 2.3%, while Dubai World Central reported a 36% surge, albeit from a small base. 

 

DXB expects annual traffic to reach 96 million this year, "bringing us closer to the symbolic 100 million milestone", Paul Griffiths, CEO of Dubai Airports said in a statement.

 

“The first half of this year has seen yet another outstanding performance from Dubai’s hospitality sector,” said Vidhi Shah, Director, Head of Commercial Valuation at Cavendish Maxwell. 

 

“Government initiatives, strategic international partnerships, a packed events calendar and new attractions, coupled with sustained ability to attract diverse visitor profiles while consistently elevating guests’ experiences, has led to growth in airport passenger traffic, tourist figures, hotel occupancy rates, ADR levels and overall hotel inventory.”

 

Elsewhere in the UAE, Abu Dhabi’s city hotels posted the sharpest rise in ADR with a 28% increase, while its resorts grew 21%. Ras Al Khaimah and Fujairah also reported higher ADR levels, up 7.6% and 6.1% respectively. 

 

Abu Dhabi attracted 1.4 million overnight visitors in Q1, led by arrivals from India, China, Russia, the UK and the US.

 

For more information, visit www.cavendishmaxwell.com