Strong Q1 Performance
The UAE’s hospitality sector continues its measured growth in 2025, driven by strategic investments and a clear tourism vision. In the first quarter alone, hotels generated AED 13.5 billion in revenue and hosted over 8.4 million guests, up 2% from Q1 2024. Total hotel nights reached 29.3 million, signaling a healthy and balanced expansion.
Resilient Competitiveness Amid Regional Growth
A report by the Interregional Center for Strategic Analysis highlights the UAE’s resilience in the face of rising regional competition. The country benefits from advanced infrastructure, flexible regulations, and accumulated destination management expertise. Over the next three years, the sector aims not just for higher visitor numbers, but also improved service quality and innovation.
Expanding Capacity with Care
By the end of 2024, the UAE had 1,251 hotel establishments and nearly 217,000 rooms—up 3% from the year before. This controlled expansion ensures occupancy rates and returns remain strong. In Q1 2025, Dubai welcomed 5.31 million international visitors (+3%), while Abu Dhabi received 1.4 million.
Tourism Strategy Driving Results
These figures align with the UAE’s “Tourism Strategy 2031,” which targets 40 million annual hotel guests and AED 450 billion in tourism GDP contribution by decade’s end. In 2024, the sector achieved AED 45 billion in revenue and a hotel occupancy rate of 78%, among the world’s highest.
Focus on Smart, Sustainable Growth
More than 15,900 new hotel rooms are under development, many of which will be delivered by 2026. These projects focus on luxury, sustainability, and smart technology. Dubai alone expects to reach 156,000 rooms by year-end 2025.
Key Growth Drivers
The UAE’s hospitality success is rooted in its status as a global business hub, world-class shopping and entertainment, ease of visas, and rising demand for real estate-linked tourism investments.