The company "Cavendish Maxvell", specializing in real estate consulting, stated that the Dubai hospitality market is expected to open 45 new properties by 2027, totaling 11,356 units, with the emphasis that luxury hotels are capturing a larger share of the new supply, mainly due to the growing attention of the international community and wealthy travelers.
In its research, the company indicated that in the current year, 20 new hospitality properties are projected to enter the market, accounting for 4,619 units. Additionally, in the following year, it plans to open another 20 projects with 5,354 units, and five projects in 2027 with 1,383 units. Furthermore, 70% of the total new supply in 2025 is expected to belong to the luxury and elite segment.
"Cavendish Maxvell" also anticipates that the average expected cost per room per day by 2025 will be 698 dirhams, reflecting a modest increase of 1.0% compared to 690 dirhams in 2024. The company underscored that the hospitality sector in Dubai is experiencing consolidation, with stable prices increasing.
In its report, the company noted that Dubai's ability to attract major events and wealthy tourists remains a key factor in the growth of average room rates. "Cavendish Maxvell" also proposes that a steady flow of visitors helps maintain good occupancy rates, which could indirectly contribute to the growth of average room rates.
Moreover, the expansion of the luxury hotel sector in Dubai will generally lead to an increase in average room rates, since elite establishments offer attractive prices and satisfy the needs of affluent clients. In 2024, Dubai set a new record in tourism, with 18.7 million room nights booked, which is 9.1% more than the 17.1 million visitors in 2023, aligning with Dubai's economic plan D33, aimed at placing the emirate among the top three global tourist destinations.
Against the backdrop of all this, the international assessment continues to reaffirm investor confidence and solidifies Dubai's global position as a leading international hub in the hospitality and real estate sectors while also showing strong growth in the tourism segment, rebounding to pre-pandemic levels and positively impacting economic growth.
