The UAE hospitality sector continued to deliver strong results in 2025 said Matthew Green, the head of research at CBRE MENA. It is supported by rising international tourism and sustained demand across major destinations.

According to the latest UAE Real Estate Market Review released by CBRE, hotel performance improved significantly across the country during 2025.

Overall, the UAE recorded hotel occupancy above 80 percent nationwide, reflecting strong tourism inflows and continued demand for both leisure and business travel. In addition, industry data confirmed growth in both average daily rate (ADR) and revenue per available room (RevPAR). Collectively, these trends highlighted the strength of the hospitality market.

Dubai maintains tourism leadership

Meanwhile, Dubai maintained its position as one of the world’s leading tourism hubs. The city welcomed 17.55 million international visitors during the first 11 months of 2025, further strengthening hotel demand across the emirate.

As a result, Dubai’s hospitality sector recorded average hotel occupancy of 80.4 percent, while hotels also reported growth in both ADR and RevPAR. Consequently, the emirate continues to benefit from a steady flow of international travelers, large-scale events, and a diversified tourism offering.

Abu Dhabi hotels RevPAR growth

Similarly, Abu Dhabi also reported strong hospitality performance throughout the year. Hotels in the capital achieved occupancy levels of around 80 percent, reflecting stable demand from both leisure visitors and business travelers.

Moreover, Abu Dhabi recorded a 22 percent increase in RevPAR, driven by growing interest in luxury hospitality experiences and the expansion of cultural tourism across the emirate.

RAK records strongest tourism year

At the same time, Ras Al Khaimah(RAK) delivered its strongest tourism performance on record. The emirate benefited from the continued growth of business tourism, alongside the hosting of large-scale international events that attracted visitors from key global markets.

Consequently, hotel demand across RAK remained strong throughout the year, further reinforcing the emirate’s position as an emerging hospitality destination within the UAE.

UAE hospitality market  

Nationally, hospitality data from CoStar Group confirmed the sector’s strong momentum. Overall, hotel occupancy across the UAE rose by more than 80 percent. Meanwhile, ADRs increased by more than 10 percent and RevPAR grew by over 14 percent.

Therefore, the UAE hospitality sector continues to benefit from strong tourism growth, diversified demand drivers and rising international interest. As a result, industry analysts expect the country’s hotel market to maintain positive momentum in 2026.