Hotel performance is the primary barometer of the UAE’s tourism economy. The federation operates one of the most monitored hospitality markets globally, with Dubai alone publishing monthly STR-aligned data covering occupancy, average daily rate (ADR), and revenue per available room (RevPAR). These metrics reveal not only demand strength but the balance between room supply growth and visitor volume expansion.
Key Performance Indicators by Emirate (2024)
| Emirate | Rooms (000s) | Occupancy (%) | ADR (USD) | RevPAR (USD) |
|---|---|---|---|---|
| Dubai | 152 | 77.4 | 188 | 145 |
| Abu Dhabi | 34 | 74.1 | 142 | 105 |
| Sharjah | 12 | 62.3 | 78 | 49 |
| Ras Al Khaimah | 8 | 68.5 | 131 | 90 |
| Ajman | 4 | 55.8 | 61 | 34 |
| Fujairah | 3 | 58.2 | 94 | 55 |
Historical RevPAR Trend — Dubai
| Year | Occupancy (%) | ADR (USD) | RevPAR (USD) | YoY Change |
|---|---|---|---|---|
| 2019 | 75.1 | 161 | 121 | — |
| 2020 | 54.7 | 112 | 61 | -49.6% |
| 2021 | 67.3 | 134 | 90 | +47.5% |
| 2022 | 73.8 | 175 | 129 | +43.3% |
| 2023 | 76.2 | 183 | 139 | +7.8% |
| 2024 | 77.4 | 188 | 145 | +4.3% |
Dubai has surpassed pre-pandemic RevPAR levels by approximately 20 per cent, driven by both rate growth and occupancy gains. The ADR recovery has been particularly strong in the luxury and upper-upscale segments, where rate integrity held even as new supply entered the market.
Supply Pipeline
The UAE has approximately 55,000 hotel rooms under construction or in advanced planning stages, with delivery weighted toward 2026-2029. Dubai accounts for the largest share, but Ras Al Khaimah’s pipeline is the most transformative relative to existing stock.
| Market | Current Rooms (000s) | Pipeline (000s) | Growth (%) | Key Projects |
|---|---|---|---|---|
| Dubai | 152 | 30 | 19.7 | Ciel Tower, Dubai Islands, Palm Jebel Ali |
| Abu Dhabi | 34 | 10 | 29.4 | Saadiyat Island expansion, Yas Bay |
| Ras Al Khaimah | 8 | 8 | 100.0 | Wynn Al Marjan Island, Rixos expansion |
| Other | 19 | 7 | 36.8 | Various projects across four emirates |
Segment Dynamics
The luxury and upper-upscale segments continue to outperform midscale and economy properties on RevPAR metrics. However, the mid-market segment is the fastest-growing category in pipeline terms, reflecting government efforts to broaden the UAE’s visitor demographic beyond high-net-worth travellers.
Budget and economy hotel brands — including Premier Inn, Rove, and Citymax — have expanded aggressively since 2022, targeting price-sensitive travellers from India, Southeast Asia, and Eastern Europe.
Risk Assessment
The principal risk facing the UAE hotel sector is supply-demand imbalance. If the current pipeline delivers on schedule without a corresponding acceleration in visitor arrivals, occupancy rates could face downward pressure from 2027 onward. Dubai’s experience in 2018-2019, when rapid supply growth compressed RevPAR despite rising visitor numbers, offers a cautionary precedent.
Outlook
Near-term performance remains strong, supported by events programming, airline capacity growth, and sustained demand from India and China recovery. The medium-term challenge is absorbing 55,000 new rooms without diluting rate performance. Markets that maintain events-driven demand peaks — particularly Dubai and Abu Dhabi — are best positioned to manage this transition.
Current Assessment: Strong — but supply growth requires demand-side acceleration to sustain RevPAR trajectory post-2027.