RAK hotel room revenues climb 17% on strong luxury demand

Sign up to our newsletters

Stay informed with the
latest news and analysis

REGISTER

عربي

You are viewing 1 of your 2 free articles

ras al khaimah aerial render stirling advistory

Aerial view of Ras Al Khaimah

Ras Al Khaimah’s hotel sector recorded a standout year in 2025 as room revenues rose 16.8% year-on-year to AED 1.06 billion, driven by accelerating demand across the luxury segment, according to Stirling Hospitality Advisors’ eighth RAK Investment Pulse report.

Total hotel revenues reached AED1.72 billion, marking a 12% rise compared to 2024 and underscoring the emirate’s strengthening position as a high-value tourism destination.

Record visitation helped drive this performance, with overnight visitors reaching 1.35 million in 2025, a 6% year-on-year increase, according to Ras Al Khaimah Tourism Development Authority (RAKTDA).

Hotel occupancy levels climbed to 75%, while average daily rates rose to AED 618.1, resulting in an 11.5% increase in RevPAR, Stirling reports. This performance ranked Ras Al Khaimah third in the UAE and fifth across the Gulf for RevPAR, reflecting a structural shift toward quality-led, international demand.

UAE hotel revenues rise 8.8% to AED44.4 billion

Ras Al Khaimah Airport posts 51% passenger surge in 2025

The report highlights that more than half of the emirate’s hotel keys now fall within the five-star category, with premium properties continuing to drive revenue growth.

Development momentum remains strong, with more than 2,000 keys announced in 2025 and around 2,500 expected to enter the market by 2027, predominantly in the luxury segment, taking the total inventory towards roughly 16,000 rooms by 2030.

Major incoming brands include Wynn Al Marjan Island, the emirate’s flagship US$5.1 billion integrated resort, which will add 1,530 rooms when it opens in 2027, alongside Marriott (Westin, W, JW Marriott Al Marjan), Nobu, Nikki Beach, Fairmont, Four Seasons and Taj, as well as home-grown select-service brands.

Render: Wynn Al Marjan, RAK

While high-end development remains robust and future supply continues to skew toward luxury, Stirling highlights a growing need to rebalance Ras Al Khaimah’s hotel mix. From 2027, demand is forecast to outpace supply, with cumulative demand expected to exceed available keys by around 1,300 by 2030.

Against this backdrop, the report identifies the greatest headroom in midscale and upper-midscale hotels, serviced apartments, short-term rentals and branded residential formats that can absorb peak demand and support wider tourism diversification. Stirling adds that Ras Al Khaimah could still “comfortably accommodate” more than 10,000 additional keys by 2030 across all categories, indicating further capacity for new projects beyond the current pipeline.

Tatiana Veller, Managing Director of Stirling Hospitality Advisors, said: “Ras Al Khaimah has reached a stage where revenue quality is improving, supply is becoming more defined, and investors have clearer visibility on future opportunities. What we’re seeing is a maturing market with sustained, value-driven growth.”

For more information, visit stirlinghospitality.com