Dubai Luxury Hotel Market Sees Rapid Growth

Dubai's hotel market welcomed 11 five-star hotels in 2024, increasing luxury room count to over 54,000. The city continues to attract visitors through innovative initiatives like the Golden Visa, ensuring robust economic growth.


Dubai Luxury Hotel Market Sees Rapid Growth

During the past year, 11 five-star luxury hotels were opened in Dubai with a total of 2274 rooms, according to the Department of Economy and Tourism of Dubai. These figures increased the total number of five-star hotels from 157 in December 2023 to 168 in December 2024, while the number of hotel rooms grew from approximately 51.8 thousand to over 54 thousand. The market of luxury hotels, which falls into the category of five stars, according to this data, accounts for 35% of the total volume of the hospitality sector in the emirate. In 2024, these hotels reached an occupancy rate of 76%.

New tourist projects, such as the Jumeirah Mina A'Salam resort and the Mandarin Oriental hotel in the center of Dubai, which will open its doors this year, will help satisfy the growing demand for hospitality both from international visitors and local residents. According to Insight Out Consulting, by 2025, there are plans to open more luxury hotels, including the five-star Gran Melia Dubai hotel, which will add 350 rooms and luxury.

Thanks to programs like the golden visa, which ensures long-term residency for investors, businessmen, and specialists, Dubai remains one of the most preferred and attractive places to visit. According to the company, the ongoing expansion of the hospitality industry in Dubai witnesses the demand growth to satisfy the increasing tourist influx and ensure high productivity of hospitality establishments.

The total number of hotel rooms in Dubai across all categories as of December last year reached 154,016 rooms in 832 establishments, compared to 150,291 rooms in 821 establishments in December 2023. For 2024, indicators of the hospitality sector in Dubai characterized by high effectiveness, with the average hotel occupancy at 78.2%, while the number of occupied hotel nights reached 43.03 million, which is 3% more than in 2023. Among luxury hotel rooms, Dubai also has about 14 thousand apartment-hotels in 81 establishments, which account for 9% of the total volume of the hospitality market in the emirate and reached an occupancy of 80%.