Cavendish Maxwell, a real estate consultancy firm, reported that with continued demand outpacing supply, the outlook for Dubai's hospitality sector appears positive in the coming years, driven by measured expansion and investment in signature projects. In its study on Dubai's hospitality market, the company stated that the growing trend towards luxury indicates the consolidation of Dubai's position as a high-value global tourist destination, supported by strong demand from high-spending international visitors. It is expected that the hotel market in Dubai will add 9,300 rooms between 2026 and 2028.
In detail, Cavendish Maxwell forecasts that Dubai's hotel market will add 9,300 rooms over three years, from 2026 to 2028, across 41 facilities of various categories. The company also added in its study on Dubai's hospitality market, obtained by 'Emirates Today', that the hotel market in the emirate will witness a number of new projects, including luxury properties, and expects the number of hotel establishments to rise to 813 hotels with a capacity of up to 168,000 rooms by the end of 2028.
The company also expects Dubai's hotel capacity to increase by around 3% this year and by 1.8% in the next year, 2027, to reach a rate of 1.1% in 2028. Cavendish Maxwell noted that Dubai witnessed a measured expansion in hotel supply in 2025, coinciding with an acceleration in visitor growth, which helped maintain strong operating levels, especially in terms of occupancy rates. It pointed out that Dubai's hotel inventory still largely concentrates in the upper categories, with luxury and premium hotels capturing a significant share of the new hotel rooms that entered the market in 2025, followed by the upper-mid and mid categories, reflecting a balance to meet demand related to business conferences and economic tourism, while the share of economy hotels remained limited.
The trend towards luxury According to Cavendish Maxwell, future development plans reveal a notable shift towards higher categories, with luxury hotels accounting for 49.8% of projects under development, followed by the 'Upper Premium' category at 28.6%, while additions in the mid and economy categories remain limited. The coming years are expected to see the launch of several signature projects, most notably: 'Baccarat Hotel & Residences', a project in the heart of Dubai city, and 'Six Senses Residences Palm Jumeirah Dubai', both expected to open this year, 2026, in addition to innovative projects like the 'Floating Venice' in Dubai and 'Kempinski Floating Palace', which enhance the diverse hospitality offerings in the emirate.
The company explained that this growing trend towards luxury indicates the consolidation of Dubai's position as a high-value global tourist destination, supported by strong demand from high-spending international visitors, in addition to the growing focus on integrated hospitality experiences and wellness concepts. With continued demand outpacing supply, the outlook for Dubai's hospitality sector remains positive in the coming years, driven by measured expansion and investment in signature projects.
Hotel rooms According to the latest data from the Department of Economy and Tourism, the number of hotel rooms in Dubai reached over 154,700 rooms in 827 hotel establishments by the end of January 2026, compared to 153,600 rooms in 831 establishments at the end of January 2025. Luxury five-star hotel rooms accounted for 37% of Dubai's total hotel market, recording around 56,400 rooms in 174 hotel establishments, followed by four-star hotel rooms at 28%, recording around 43,600 rooms in 195 establishments. Three-star and one-star hotels accounted for about 19% of the total hotel market capacity, exceeding 29,500 rooms in 278 hotel establishments. Serviced apartments recorded over 25,200 rooms in 180 establishments, thus accounting for about 16% of the total hotel market in Dubai. Cavendish Maxwell expects 9,300 hotel rooms to be opened in Dubai by the end of 2028.
