Stock - Hotel / Dubai hotel / Tourism / UAE hotel
With the new capacity, the number of hotel rooms in Dubai will tally 154,000, up 6.4% compared to 2022. Image Credit: Virendra Saklani / Gulf News

Dubai: The UAE ‘s hospitality sector will be getting a timely addition of new hotel rooms, with a new forecast suggesting 9,200 rooms added before the close of 2023. Of this, 70 per cent will be in Dubai.

Along with the new capacity, the number of hotel rooms in Dubai will tally 154,000, and a healthy 6.4 per cent increase from 2022, according to a new report by Knight Frank.

“Dubai, which has emerged not only as the world’s most popular destination for two years running according to Trip Advisor, but the emirate has also earned the accolade of having the world’s highest occupancy levels during the first-half of 2023 at 78 per cent,” said Faisal Durrani, Partner – Head of Research MENA, with the consutancy.

According to hotel industry sources, the new capacity will not have to stay unoccupied for long. Demand in the year-to-now has run consistently high, with operators managing to keep occupancy levels comfortably high even during summer.

This explains the confidence about what it means to have all the additional rooms being added to the fold.

“A substantial 70 per cent of the under-construction and final planning supply in Dubai belongs to the luxury and upper upscale hotel segments, catering to discerning travellers,” said Turab Saleem, Partner, Head of Hospitality, Tourism and Leisure Advisory.

“In H1-2023, Dubai welcomed 8.6 million tourists, marking a significant 20 per cent increase from 2022. This surge underscores Dubai's enduring appeal as a global tourist hotspot. Internationally branded hotels constitute a 67 per cent of Dubai's existing supply, highlighting the city's global appeal.

Who’s adding what?

In terms of rooms, the hotel operator Accor has the ‘top spot’, with 71,820 existing rooms and 49,510 more in the pipeline expected for completion by 2030. Marriott International follows with 63,790 available rooms and 52,790 planned, while IHG Hotels & Resorts, has 35,140 current and 22,120 in development.

Hilton Worldwide which has 33,450 rooms will add a further 39,860.