The vibrant hospitality industry in the United Arab Emirates is set to add 9,200 more rooms by the end of 2023, according to leading international real estate advisory firm Knight Frank. In accordance with Knight Frank’s most recent evaluation, by the end of 2023, Dubai’s hospitality sector would operate around 154,000 rooms, a significant 6.4% rise from the year 2022.
Leading industry titans are fueling this expansion, with Accor taking the top rank with 71,820 already available rooms and 49,510 more on the way, all of which are anticipated to be finished by 2030. Marriott International is next, with 52,790 planned rooms in addition to the 63,790 now available.
The International Hotel Group Hotels and Resorts, with 35,140 existing rooms and 22,120 under construction; the Hilton Worldwide brand, with 33,450 existing rooms and 39,860 planned; Radisson Hotels, with 22,830 available rooms and 11,651 more planned; and Rotana Hotel Hotels, with 16,976 existing rooms and 10,807 under construction.
With a current inventory of 207,200 hotel rooms and an extra 24,500 rooms under construction, the hospitality industry’s global dominance is further cemented.
70% of the forthcoming supply for the UAE is located in Dubai, which keeps monopolizing the sector. 8.6 million tourists visited Dubai in H1 2023, a notable 20% rise over 2022. This increase highlights Dubai’s continued popularity as a top travel destination worldwide. 67% of Dubai’s current hotel inventory is made up of hotels with international brands, demonstrating the city’s popularity on a global scale. The luxury and higher upscale hotel segments, which appeal to discerning travelers, account for a sizable 70% of the supply in Dubai that is now under development and in final planning.
Partner and Head of Hospitality, Tourism, and Leisure Advisory Turab Saleem
The Dubai industry as a whole reported a 0.8% rise in RevPAR compared with July 2022, powered by a 6.8% rise in occupancy but restrained from further expansion by a 5.6% fall in ADR, according to STR statistics published by Knight Frank.
The majority of sectors, according to categorization information gathered by HOTSTATS for July 2023, saw slight ADR reductions, with the exception of upscale city center rooms around the downtown area, Business Bay, and SZR, which saw a 2% increase. Luxury beach resorts saw an increase in occupancy comparable to those of other groups, but with a greater ADR decline of 13%.
The number of hotels in the UAE is growing, which helps cities like Dubai thrive. As reported by Trip Advisor, Dubai has emerged as the world’s preferred location for two years in a row, as well as in the first part of 2023, the emirate had the highest occupancy rates ever, at 78%.
Partner and MENA Head of Research Faisal Durrani