Dubai added 2,700 new hotel rooms...

Emirate projects another 10,000 by end of 2025

More than 2,700 new hotels rooms were delivered in Dubai in the first half of 2024, with a further 10,100 set to come online by the end of 2025, according to new research.

The data released by real estate advisory group and property consultant Cavendish Maxwell shows that Dubai added 12 hotels to its inventory between 1 January and 30 June 2024, bringing the total number of properties to 716 with about 149,750 rooms between them.

Another 40 hotels are due to open between now and the end of next year, with 4,748 additional rooms expected in 2026 and 2027, according to the firm’s H1 2024 hospitality market performance study.

Four-star hotels saw the biggest growth compared to 2023, with 436 new rooms delivered in H1 2024 – a 216% increase on the same period last year.

There was also a surge in the number of new five-star hotel rooms opening for businesses: 1,681 came online during H1 this year, up 111% on H1 2023.

Released in the lead-up to the FHS World hospitality industry summit, the report revealed that high-end accommodation continues to dominate Dubai’s hospitality offering, with 67% of inventory falling in the luxury, upper upscale or upscale classification in June 2024.

Upper midscale and midscale hotels accounted for 27% of inventory between January and June this year, with 5% in the economy category.

More than 75% of new supply delivered between January and June fell in the luxury and upper upscale categories, accounting for 2,054 rooms opening in H1.

Luxury openings this year included The Lana Dubai Dorchester Collection, SIRO One Za’abeel, One & Only Za’abeel, FIVE Lux JBR and the Address Palace Dubai Creek Harbour.

More hotels in the luxury segment – including the Ciel Dubai Marina, Viceroy Dubai Business Bay, Port De La Mer hotel and the Marbella and Berlin hotels at the Heart of Europe – are due to open later this year.

The report revealed that Western Europe was the biggest source market in H1 2024, accounting for 20% of Dubai’s 9.31 million visitors. South Asia came second at 17%, followed by Eastern Europe at 15%.

GCC tourists made up 14% of visitors, and MENA 12%, according to data from the Department of Economy and Cavendish Maxwell.

Cavendish Maxwell Associate Partner, Commercial Valuation Gergely Balint said: “Dubai’s world-leading, record-breaking hospitality sector continues to flourish, thanks to the emirate’s robust economy, growing investment in infrastructure and increased focus on experience-based tourism.”

For more information, visit https://cavendishmaxwell.com/insights/reports-and-whitepapers/dubais-hospitality-sector-market-performance-in-h1-2024

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