Over 23,000 new hotel rooms in UAE to create thousands of vacancies

Dubai accounts for more than half of the new supply, where 12,861 new rooms are currently in development, increasing the total supply to 165,339 by 2030, says Knight Frank

The data shows that the existing supply stands at 213,928 keys, which is expected to rise to 235,674 by 2030. In Dubai, 12,861 new rooms are currently in development, increasing the total supply from 152,478 rooms today to 165,339 by 2030.

As a global luxury destination, the majority of this new supply is in the high-end segment. Of the 213,928 existing hotel rooms, 26 per cent are classified as upscale, 22 per cent as luxury, and 21 per cent as upper upscale. By the end of 2025, the total number of rooms in the UAE is expected to reach 217,853 – a 3 per cent increase from 2024 – and rise further to 235,674 rooms across 1,184 hotels by 2030.

Among the other emirates, Abu Dhabi has 37,016 keys, Sharjah 14,478 keys, and Ras Al Khaimah 11,902 keys. As of August 2025, 55.9 per cent of the UAE’s upcoming hotel supply is in Dubai.

How many jobs are to be created?

This expansion is expected to generate thousands of direct and indirect jobs across the UAE hospitality sector, particularly in Dubai. On average, each luxury hotel room creates 1.5 jobs –including housekeeping, F&B staff, concierge, and spa positions while midscale rooms create 1 job per room, and budget rooms 0.5 jobs.

Overall, the UAE is projected to see between 11,500 and 34,500 new jobs created in the hospitality sector over the coming years.

“The hospitality sector in the UAE continues to grow strongly, with record tourist arrivals in cities like Dubai highlighting the emirate’s meteoric rise as one of the world’s most visited destinations. The government forecasts that 22 million tourists will visit the city by the end of 2025,” said Faisal Durrani, partner and head of research for Mena at Knight Frank.

Analysts note that investors are increasingly shifting focus from development-heavy expansion to strategic acquisitions as the UAE’s hospitality sector grows.

“UAE hotel transactions are entering a new phase of maturity, particularly in Dubai, where investor attention is moving from development-led expansion to strategic acquisitions and asset repositioning. This reflects a more sophisticated investment landscape shaped by years of rapid growth and a deepening pool of institutional capital,” added Durrani.

Oussama El Kadiri, partner and head of hospitality, tourism, and leisure advisory for Mena at Knight Frank, highlighted Abu Dhabi and Ras Al Khaimah as emerging complementary investment destinations, offering leisure-driven opportunities and alternative asset classes.

“As the UAE transitions from a development-heavy cycle to a balanced, investment-led phase, hotel transactions are expected to remain active. The market’s maturity, depth, and resilience position it as a leading destination for hospitality capital in the region,” he said.

El Kadiri further noted that the maturing market is attracting a broader range of investors – from regional family offices to international funds seeking long-term value through operational enhancements, brand partnerships, and mixed-use integrations.