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Some 34 new hotels are on track to open in Dubai this year, raising the total to 739, according to a Cavendish Maxwell report (pdf). The emirate had 716 hospitality establishments by the end of 1H 2024 to meet rising demand, with 67% of new supply in the luxury and upper upscale segments. An additional 18 hotels are expected to be completed next year.
Dubai’s hospitality market achieved an overall average occupancy of 78% during 1H 2024, representing a marginal 0.1% y-o-y increase, with the luxury and upper midscale segments logging the most significant gains. Revenue per available room in Dubai increased 4.7% y-o-y in 1H 2024, alongside a 4.6% increase in the average daily rate (ADR).
REMEMBER- Tourism is on the up in Dubai: The emirate attracted around 9.31 mn international visitors in 1H 2024. A record 44.9 mn visitors passed through Dubai International Airport (DXB) during the period, marking an 8% y-o-y increase, and prompting DXB to revise its 2024 passenger forecast up to a record 91.8 mn from 91 mn passengers.
IN ABU DHABI, RAS AL KHAIMAH, AND FUJAIRAH
Abu Dhabi City Hotels’ average occupancy rates hit 83% in 1H 2024, up 12% y-o-y from 76% in 2023, marking the highest y-o-y increase among the emirates, according to the report. Meanwhile, ADR in Abu Dhabi rose 11% y-o-y.
Occupancy rates were also up in Fujairah, modestly increasing 2.8% y-o-y to 77%, while Ras Al Khaimah logged a marginal decline of 0.3% y-o-y to 73%. ADR increased by 10.9% y-o-y in Ras Al-Khaimah and 2.8% y-o-y in Fujairah.
REMEMBER- Tourism is projected to account for 12% of GDP this year, totaling AED 236 bn. In 2023, GDP accounted for AED 220 bn of the national economy, reflecting an 11.7% y-o-y increase. However, rising operational costs and intensifying competition may pose challenges to growth, Cavendish Maxwell said.
