UAE hotel revenues jump 12% as sector posts record growth

The UAE’s hospitality sector has achieved record double-digit growth, with performance metrics reaching new highs as the market transitions into a more investment-driven phase, according to Knight Frank’s UAE Hospitality Market Review for Autumn 2025.

 

The report said the country’s hospitality sector is “going from strength to strength”, driven by record visitor arrivals, with the UAE’s average daily rate up 11.9% and revenue per available room rising 12.3% in the 12 months to August 2025.

 

Average occupancy climbed to a record 78.5%, a four-point rise year-on-year, contributing to a nearly 12% increase in hotel revenues.

 

Abu Dhabi led performance, registering a 20.2% rise in ADR and a 24% gain in RevPAR, the strongest annual figures recorded for the UAE capital to date.

 

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Dubai followed with a 10.1% RevPAR growth, while fast-developing northern emirate Ras Al Khaimah recorded 10% growth.

 

Knight Frank said the results showed sustained demand across the emirates amid record tourist arrivals and expanding hotel capacity. 

 

Between January and July 2025, Dubai attracted a record 11.17 million international visitors, a 5.2% year-on-year increase, with the government now forecasting that total arrivals will reach 22 million by the end of 2025, says Faisal Durrani, Partner – Head of Research, MENA at Knight Frank.

 

On the back of record tourist arrivals across the UAE, hotel supply has also reached new heights.

 

As of August 2025, there were 212,291 rooms trading nationwide, a record count for operational inventory. The total is expected to rise to 217,853 by the end of the year and 235,674 rooms across 1,184 hotels by 2030, marking the largest pipeline ever recorded.

 

Upcoming highlights include the 259-key Mandarin Oriental Downtown Dubai, set to open in October, followed by the world’s tallest hotel, Ciel Dubai Marina, in November, bringing more than 1,000 rooms to the city.