Dubai's hotel sector achieved a record performance in December 2025, reaching the highest revenue per available room (RevPAR) since 2007, driven by strong tourist demand during the holiday season, according to preliminary data from CoStar, a leading global provider of real estate market data and analytics. The data showed that hotel occupancy reached 84.3% in December, a year-over-year increase of 3.4%, marking the highest level for this month since 2006. The average daily rate (ADR) stood at 1,042 UAE dirhams, a growth of 11.1% compared to the same period last year, setting a new high for 2025. RevPAR increased to 878.19 dirhams, reflecting a 15% year-over-year rise. Hotel performance peaked on New Year's Eve, with occupancy reaching 94.1%, ADR soaring to 2,286 dirhams, and RevPAR hitting 2,151 dirhams—a first for Dubai's hotel market, where both the average price and revenue per available room surpassed the 2,000 dirham mark. Furthermore, Dubai's hotels maintained strong performance for nine consecutive nights starting from December 23, with occupancy staying above 80% and ADR exceeding 1,000 dirhams throughout the period, reflecting robust demand and sustainable performance during the peak tourist season.
