UAE hotel revenues hit record levels as tourism demand strengthens

The United Arab Emirates’ hospitality sector has posted a substantial rise in hotel revenues in 2025, with total takings reaching around AED 44.4 billion for the period from January to November, marking an 8.8 per cent uplift compared with the same span a year earlier, driven by stronger average daily rates and robust demand across key markets. This performance underscores the UAE’s ongoing success in leveraging tourism as a core economic driver and reflects broader growth trends across the global travel and hospitality industries.

Abdullah bin Touq Al Marri, Minister of Economy and Tourism and Chairman of the Emirates Tourism Council, highlighted that the growth in hotel receipts has been accompanied by rising guest numbers and nights spent in accommodation across the seven emirates, indicating sustained appeal among international and regional travellers. Official figures show hotel guest numbers climbed to about 29.1 million, with guest nights exceeding 99.4 million, rising by more than five and six per cent respectively compared with the equivalent period in 2024, pointing to deeper engagement and longer stays.

Industry analysts attribute part of this performance to a combination of expanding air connectivity, broader global travel demand and targeted destination marketing that has strengthened the UAE’s competitiveness on the world stage. Dubai, long regarded as a global hub for leisure and business travel, continued to attract high visitor volumes, with occupancy rates across the emirate’s hotel stock frequently reported at levels above 79 per cent, aiding revenue optimisation through improved pricing power.

The data for 2025 also reflects the ongoing effects of strategic expansion in hotel capacity across the UAE. By late 2025, overall room inventory was projected to exceed 217,000 units, supported by new openings across Dubai, Abu Dhabi, Sharjah and other emirates. Operators in luxury and upscale segments have been particularly active, capitalising on international demand while mid-market and extended-stay formats are drawing cost-conscious segments and longer-stay business travellers.

Stakeholders in the hospitality sector note that rising average daily rates have been pivotal in boosting topline figures. A combination of stronger pricing in luxury segments, event-driven demand and strategic yield management helped ADR increase year-on-year, even as operators worked to maintain competitive positioning. This aligns with wider regional trends where premium-segment hotel performance has outpaced more modest tiers, reflecting shifting patterns in global travel where experiential and high-end stays are commanding greater spending.

Broader tourism performance trends during 2025 further illuminate the context for the hospitality gains. Dubai reported a significant uptick in international visitor arrivals, with figures approaching or surpassing previous peaks as Western European, GCC, South Asian and Asian markets all registered meaningful contributions to total tourism flows. Many visitors extended their stays beyond city breaks, boosting total occupied room nights and underpinning higher revenue per available room metrics.

Policy initiatives have also played a role in strengthening the sector’s fundamentals. Government strategies aimed at enhancing visa flexibility, extending air route networks and promoting integrated tourism offerings have broadened the UAE’s appeal across source markets. Alongside the expansion of business-to-business events, exhibitions and cultural attractions, these measures have helped sustain momentum beyond peak travel seasons, providing steadier demand and improved utilisation for hotels across categories.

As the UAE moves further into 2026, industry voices say that maintaining this growth trajectory will require continued focus on innovation, service quality and diversification of the visitor experience. Hotel developers and operators are exploring new concepts that blend hospitality with lifestyle, wellness and cultural experiences, aiming to capture evolving traveller preferences while reinforcing the country’s reputation as a world-class destination.