JEDDAH: The UAE’s hospitality sector is shifting from development-led expansion to a more mature investment phase, with Dubai and Abu Dhabi leading growth, a new analysis showed.
According to Knight Frank’s UAE Hospitality Market Review, hotel performance improved across the board, with revenue per available room and average daily rates both up 11.9 percent year on year through August, while occupancy reached 78.5 percent.
Dubai, the UAE’s largest hospitality market, saw RevPAR rise 10.1 percent, followed by Ras Al-Khaimah at 10 percent, while Abu Dhabi led the sector with RevPAR up 24 percent and ADR increasing 20.2 percent year on year.
This expansion reflects broader regional growth driven by strategic diversification across Gulf Cooperation Council member states, highlighting the bloc’s commitment to strengthening hospitality infrastructure and services.
Faisal Durrani, partner and head of research at Knight Frank, said: “The hospitality sector in the UAE is going from strength to strength, with record tourist arrivals into cities like Dubai being a testament to the emirate’s meteoric rise as one of the world’s most visited cities.”
