During the first half (H1) of the year, Dubai experienced exceptionally high occupancy rates, ranking among the top destinations worldwide. In light of this success, real estate consultancy firm Knight Frank has reported that the number of hotel rooms in the UAE is set to expand by 9,200.
Read more: Dubai real estate poised to grow in 2023 amid luxury demand
Thriving tourism industry
This significant surge in occupancy rates reflects the growing demand for accommodations in the region and demonstrates the UAE’s commitment to meeting the needs of its thriving tourism industry. The expansion of hotel room capacity is expected to further enhance the UAE’s position as a sought-after destination for both business and leisure travelers.
According to the report, Dubai remains at the forefront with the majority of hotel rooms, totaling 154,000. This showcases a notable 6.4 percent year-on-year increase. In H1 2023, the emirate achieved a commendable hotel occupancy rate of 78 percent. The current overall hotel room supply in Dubai stands at 207,200.
Accor takes the lead as the hospitality company with the largest number of rooms in the country, boasting a total of 71,820 rooms. Additionally, an impressive 49,510 additional rooms are currently in the pipeline, with an anticipated completion date set for 2030.
Marriott International stands strong with a current room count of 63,790 and an impressive 52,790 rooms planned for future development. On the other hand, IHG Hotels & Resorts currently operates 35,140 rooms, with an additional 22,120 rooms in the development phase.
Rotana Hotels, a renowned hospitality brand originally founded in the UAE, currently operates a total of 16,976 rooms.
Prime hospitality destination
Turab Saleem, partner and head of Hospitality, Tourism, and Leisure Advisory at Knight Frank, has stated that Dubai dominates the upcoming hotel supply in the country, accounting for 70 percent of the total. This highlights Dubai’s position as a leading destination for hospitality development. Additionally, H1 2023 witnessed a significant surge in tourist arrivals, with 8.6 million visitors, reflecting a notable 20 percent increase compared to the previous year.
Furthermore, Saleem added that internationally branded hotels constitute 67 percent of Dubai’s current hotel inventory.
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