BrazilDubai added 12 hotels and 2,700 new rooms in first half of 2024
More than 2,700 new hotels rooms were delivered in Dubai in the first half of 2024, with a further 10,100 set to come on to the market by the end of 2025, according to new research by Cavendish Maxwell.
In the period between 1 January and 30 June 2024, Dubai added 12 hotels to its inventory, bringing the total number of hospitality establishments to 716, with almost 149,750 rooms between them. Another 40 hotels are due for delivery between now and the end of next year, with 4,748 additional rooms expected in 2026 and 2027, according to the study from Cavendish Maxwell, an international real estate consultancy.
Hotels in the 4-star category saw the biggest growth compared to 2023, with 436 new rooms delivered in the first half of 2024 – a 216% increase on the same period last year. There was also a surge in the number of new 5-star hotel rooms opening for businesses: 1,681 came online during H1 this year, up 111% on the same period the year previous.
Luxury openings so far this year include The Lana Dubai Dorchester Collection, SIRO One Za’abeel, One & Only Za’abeel, FIVE Lux JBR and the Address Palace Dubai Creek Harbour. More hotels in the luxury segment – including the Ciel Dubai Marina, Viceroy Dubai Business Bay, Port De La Mer hotel and the Marbella and Berlin hotels at the Heart of Europe – are due to open this year.
The growth in Dubai’s hotels footprint comes in response to booming demand from the tourism sector. In H1, over 9.3 million visitors travelled to Dubai, with Western Europeans being the biggest tourist group, accounting for 20% (or 1.9 million). South Asians, Eastern Europeans, and tourists from the GCC region followed closely behind at 17%, 15%, and 14%, respectively.
Overall, high end accommodations continue to dominate Dubai’s hospitality offering, with 67% of inventory falling in the luxury, upper upscale or upscale classification in June 2024. Upper midscale and midscale hotels accounted for 27% of inventory between January and June this year, with 5% in the economy category.
Cavendish Maxwell’s report further found that occupancy levels in Dubai remained stable in H1, at 78%, with the luxury and upper mid-scale segments performing better than the same period last year: 2% and 1.6% respectively. Dubai’s Average Daily Rates (ADR) in H1 2024 stood at around AED720 – the highest in six years and an increase of 4.6% cent on H1 2023.
Commenting on the report, Gergely Balint, Associate Partner at Cavendish Maxwell, said: “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. A global hub for business, tourism and leisure, hospitality is firmly established as a cornerstone of Dubai’s economic growth and diversification.”
