The UAE’s hotel industry wrapped up 2025 in confident stride, riding a tourism wave that barely showed signs of slowing. Visitor numbers climbed across key emirates, room rates strengthened, and occupancies hovered at levels most markets can only envy.
Dubai remained the engine of the surge, drawing 17.5 million international visitors in the first eleven months alone. Abu Dhabi followed suit with steady gains, while Ras Al Khaimah quietly turned in its strongest year yet, fuelled by business travel and a calendar packed with major events.
The momentum in tourism spilled neatly into real estate and hospitality. Non-oil economic activity stayed resilient through the final quarter, population growth remained strong, and investor interest—both local and global—continued to flow. Together, they formed a solid base for hotel performance nationwide.
In Dubai, hotels averaged occupancy of just over 80%, with both average daily rates and revenue per available room climbing in tandem. Abu Dhabi matched the pace, posting around 80% occupancy and a sharp jump in RevPAR, helped by growing appetite for luxury stays and culture-led travel experiences.
Ras Al Khaimah stood out as a breakout performer, delivering record results as it leaned into conferences, exhibitions and large-scale events to broaden its appeal beyond leisure alone.
Across the country, industry data confirmed the upswing: national occupancy pushed past 80%, room rates rose by more than 10%, and RevPAR gains crossed the 14% mark—clear signals that demand remained comfortably ahead of supply.
Behind the strong numbers lies a familiar theme: limited new supply in several segments, combined with diversification-driven growth and rising confidence in the UAE’s long-term trajectory. As development plans roll forward and tourism continues to deepen its footprint, hospitality is shaping up not just as a beneficiary of growth, but as one of its core drivers heading into 2026.
