Dubai to add 5,000 hotel rooms before end of 2025

Sign up to our newsletters

Stay informed with the
latest news and analysis

REGISTER

عربي

You are viewing 2 of your 2 free articles

Dubai is expected to welcome 19 hotels in the second half of 2025

Dubai is set to add more than 5,000 hotel rooms across 19 properties in the second half of 2025, and another 6,000 rooms next year, with most new openings pushing the market further into the luxury segment

That’s according to real estate consultancy Cavendish Maxwell’s H1 2025 Dubai hospitality sector market performance report, which shows visitor numbers climbed 6.1% year-on-year to reach 9.9 million in the first half, driving occupancy rates to 81%.

That growth has put pressure on the hotel inventory, which currently stands at 157,144 keys across 748 properties, following the delivery of 900 rooms in five new hotels during H1 2025.

The pace of expansion is now set to accelerate in H2 with 19 openings adding more than 5,000 rooms.

Highlights include the 259‑key Mandarin Oriental Downtown Dubai, set to open in October; the Anantara Seven City in Jumeirah Lakes Towers (78 keys); Jumeirah Living Business Bay (82 keys); and Moxy Al Barsha Dubai (480 keys).

Mandarin Oriental Downtown Dubai is set to open in October

More than two thirds (67%) of Dubai’s existing hotel stock already falls within the Luxury, Upper Upscale or Upscale categories, and 84% of the hotels opening in 2025 will do the same.

Cavendish Maxwell’s figures break that down to 30.4% Upscale, 29.8% Upper Upscale and 24.3% Luxury.

Looking further ahead, 2026 marks a more decisive shift towards the luxury end of the spectrum, which is set to represent 61% of new supply, a 150% increase compared to H2 2025.

165% surge in UAE domestic travel searches for summer

Mandarin Oriental Downtown, Dubai to open in October 2025

Properties set to headline that wave include Ciel Dubai Marina, Dorchester Collection Ela by Omniyat and InterContinental Portofino Resort in the The Heart of Europe.

That pivot towards higher-end hotels will come at the expense of mid-range supply, with new Midscale and Economy openings falling from 15% in H2 2025 to just 7.6% in 2026.

“With 5,000 new rooms on the way this year – and another 6,000 in 2026 and 2027 – Dubai is set to remain the premium, global destination of choice for both leisure and business travellers,” said Vidhi Shah, Director, Head of Commercial Valuation at Cavendish Maxwell.

Occupancy and rate performance in H1 2025 also underlined this trend, with the strongest gains recorded in the Upscale, Upper Upscale and Luxury categories, pointing to sustained appetite for high‑end stays.

For more information, visit cavendishmaxwell.com