September 27, 2024: Dubai’s hospitality sector is experiencing rapid growth, with 12 new hotels and more than 2,700 rooms added in the first six months of 2024, bringing the city’s total number of hotels to a record 716, offering nearly 149,750 rooms, according to Cavendish Maxwell.
The property consultancy firm said the expansion is set to continue, with 40 more hotels expected to open by the end of 2024, as well as 4,748 more rooms between 2026 and 2027.
“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,” said Gergely Balint, associate partner, Commercial Valuation and hospitality real estate expert at Cavendish Maxwell.
The city’s hotel growth is particularly pronounced in the 4-star and 5-star categories. The number of 4-star rooms increased by a staggering 216 per cent in H1 2024, with 436 new rooms added, while the 5-star segment saw a 111 per cent increase, with 1,681 new rooms coming online.
Cavendish Maxwell’s report shows a continued dominance of high-end accommodations. The latest figures show that 67 per cent of Dubai’s hotel inventory in H1 2024 fell into the luxury, upper upscale, or upscale categories.
Similarly, mid-range options accounted for 27 per cent of inventory during the first half of the year, and economy hotels made up only 5 per cent.
Dubai’s luxury hotel scene is thriving. Over 75 per cent of the new hotel supply in the first half of 2024 fell into the luxury and upper upscale categories, adding 2,054 rooms to the city’s inventory.
Notable luxury openings include The Lana Dubai Dorchester Collection, SIRO One Za’abeel, One & Only Za’abeel, FIVE Lux JBR, and the Address Palace Dubai Creek Harbour.
The luxury expansion is set to continue with several more high-end hotels scheduled to open later this year, including Ciel Dubai Marina, Viceroy Dubai Business Bay, Port De La Mer hotel, and the Marbella and Berlin hotels at the Heart of Europe.
Meanwhile, Dubai welcomed 9.31 million visitors in H1 2024, with Dubai International Airport handling a record 44.9 million passengers in the same period.
“Hospitality is firmly established as a cornerstone of Dubai’s economic diversification, and, with around 15,000 new rooms set for delivery between now and the end of 2027, shows no sign of slowing down,” said Balint.
“Adapting to evolving trends, sustaining its unrivalled capacity for diversity and innovation, and leveraging emerging opportunities will further enhance Dubai’s position as a world-leading hospitality destination and help the city achieve its D33 objective of becoming one of the top three global tourism destinations.”
Dubai continued to sustain its strong tourism momentum after a record 2023 when the city hosted 17.15 million international overnight visitors. The growth in the first six months of this year puts the city on track for a record performance in 2024.
