According to data obtained by 'Emirates Today' from the Dubai Department of Economy and Tourism, the Dubai hotel market added approximately 2,000 luxury five-star rooms last year. According to this data, the number of five-star hotel rooms increased from around 54,000 rooms at the end of 2024 to around 56,000 rooms at the end of December 2025. Meanwhile, the share of rooms in this category rose from 35% to 37% of the total hotel market, which reached a capacity of 154,000 rooms by the end of 2025. Based on this data, the luxury hotel market, classified as 'five-star', achieved an occupancy rate of 79% between January and December 2025, compared to an occupancy rate of 76% in the previous year. At the same time, luxury hotel rooms constituted the vast majority of new rooms that entered the market in 2025. The Dubai Department of Economy and Tourism stated that the emirate enhanced its appeal in 2025 thanks to a number of new hotel openings and strategic initiatives. The emirate's hotel and tourism sectors recorded record results last year, placing Dubai in a leading position compared to other leading global cities such as Bangkok, New York, Paris, and Singapore, and bringing it closer to London in terms of total hotel capacity. In its annual report on the tourism sector's performance, the Department stated: 'The emirate witnessed the opening of a number of new projects of various categories and locations, including: Dubai Marina Mall, in addition to Jumeirah Mina-A’Salam, Mandarin Oriental Downtown Dubai, Cheval Maison — Expo City, and Vida Dubai Mall.' It is worth noting that the Dubai Department of Economy and Tourism launched an initiative that includes new investment incentives to encourage investment in new hotel facilities in high-growth areas in Dubai to keep up with the continuous increase in the number of international visitors. The initiative stipulates a 100% refund of Dubai's municipality tax on room sales and the 'tourism dirham' for hotel facilities for a period of two years from their opening date and the start of receiving guests. According to the Department, the initiative aims to meet the growing demand for hotel facilities in areas witnessing significant growth, including 'Dubai South', 'Jebel Ali Palm', 'Dubai Parks', and 'Dubai Islands', amidst the ongoing implementation of quality projects aimed at achieving the goals of Dubai's economic agenda D33. Dubai received 19.5 million international tourists in 2025, and also concluded the past year by receiving more than two million international tourists in a single month for the first time, in December 2025, recording a 6% year-on-year growth.
