UAE: 19 new hotels in Dubai to generate 7,500 jobs

Dubai will see 19 new hotels opening during the second half of 2025, adding 5,000 new rooms as the hospitality sectors continue to witness grow due to a strong inflow of tourists and rising staycations in the country, according to Cavendish Maxwell.

Most of the new inventory is primarily in the upscale, upper upscale, and luxury segments. While the actual delivery rate may be lower, full completion of these rooms could temporarily soften occupancy levels in these segments. Nevertheless, robust demand is expected to carry the market through the remainder of 2025, the consultancy said.

As of 2024, the number of establishments increased to 724 hotels and the number of rooms has risen to 151,245 compared to 705 hotels with 146,990 keys in the previous year.

By the first half of 2025, the number of properties had risen to around 730 hotels, with the total room inventory reaching approximately 152,000.

According to senior industry executives, hotels in Dubai create around 1.5 jobs per room. Therefore, these new 5,000 rooms during the second half are likely to generate around 7,500 jobs in the city.

Dubai received 9.9 million international visitors from January to June 2025 — up 6.1 per cent from the same period in 2024 — driven by government initiatives, strategic international partnerships, a packed events calendar, and new attractions catering to diverse visitor profiles.

Reflecting this momentum, the hospitality sector recorded a strong performance, with hotel occupancy reaching 81.4 per cent in the first half of 2025, an increase of 4.5 per cent year-on-year. Average daily rate (ADR) also climbed 5.5 per cent to Dh754.5, supported by both international arrivals and domestic staycations.

“As Dubai continues to set new benchmarks in safety, inclusivity, and connectivity, the hospitality sector is not just keeping pace — it is leading the way. The city’s ability to attract diverse visitor profiles, while consistently elevating guest experiences, underpins its resilience and growth,” said Vidhi Shah, director and head of commercial valuation at Cavendish Maxwell.

“Looking ahead, Dubai’s focus on premium offerings and strategic innovation will ensure it remains a global destination of choice for both leisure and business travelers,” Shah said.

“With continued improvements in connectivity and key events planned for the second half of 2025, Dubai’s appeal is expected to grow further, supporting robust growth in international tourism,” Cavendish Maxwell said in the report.

As of the first half of 2025, the majority of Dubai’s existing room supply was concentrated in the upscale segment, accounting for 24.4 per cent of total rooms. Together, the luxury, upper upscale, and upscale categories comprised 67.4 per cent of the current inventory, while the remaining 32.6 per cent was distributed across midscale (14 per cent), upper midscale (12.9 per cent), and economy (5.5 per cent) segments. Notable hotel openings from January to June 2025 included Jumeirah Marsa Al Arab, Vida Dubai Mall, and Cheval Maison Expo City Dubai.