5-Star Rise: Hotels See Growth In Dubai As Occupancy And Visitor Numbers Hike In 2025

Dubai’s hotel industry has expanded significantly, reaching nearly 152,300 rooms across 818 hotels by August 2025. This growth is accompanied by increased occupancy and average daily rates (ADR) compared to the same period in the previous year, according to Cavendish Maxwell, a prominent real estate advisory group.

The report highlights that from January to August 2025, hotel occupancy averaged 78.5%, marking a 3% increase from last year. Five-star hotels experienced the most significant rise in occupancy at 4.1%. Deluxe/superior hotel apartments followed with a 3.8% increase, while standard hotel apartments saw a 2.5% rise.

Dubai’s tourism sector has also seen a surge in international visitors. In the first eight months of the year alone, the city welcomed 12.54 million international tourists. This figure represents an increase of over 5% compared to the same timeframe in 2024.

Premium segments dominated Dubai’s hotel supply between January and August. The five-star category accounted for 54,100 rooms while four-star hotels offered 43,400 rooms. Together they comprised nearly two-thirds (64%) of Dubai’s total hotel inventory.

The Future Hospitality Summit World coincided with Cavendish Maxwell’s report release. The report underscores Dubai’s tourism sector reaching new heights as it continues to attract more visitors globally.

Western Europe remained Dubai’s largest source market for international visitors during this period. It accounted for over one-fifth (21%) of arrivals and recorded more than a 12% year-on-year growth. The GCC was the second-largest contributor at almost 17%, showing nearly a 16% increase.

CIS and Eastern Europe followed closely at approximately 14.5%, while the Americas contributed around 7%. Australasia accounted for about 2% of visitors but showed notable increases of 9.4%, 11.1%, and 12.4% respectively.

The outlook for Dubai’s tourism remains positive as it enters its peak travel season alongside major events like Eid Al Etihad and festive celebrations approaching. International visitor arrivals are expected to reach approximately 19.5 million by year’s end.

Cavendish Maxwell forecasts that hotel occupancy will maintain an average rate of around 78.5% throughout the remainder of the year. Average daily rates are anticipated to rise due to ongoing leisure and business travel alongside expanding premium hotel supply.

The UAE airports welcomed nearly 103 million passengers from January to August—a rise of about 5.3% compared to last year—with Dubai International Airport (DXB) handling most traffic despite temporary airspace restrictions.

This period marked DXB’s busiest first half on record as it continued accommodating growing passenger numbers efficiently amid challenges faced within regional airspace constraints.

Vidhi Shah, Director and Head of Commercial Valuation at Cavendish Maxwell, stated: “Dubai’s hospitality market has performed strongly so far in 2025, with passenger traffic, international visitor numbers, occupancy rates, and average daily rates all rising compared with the same period last year. This growth is supported by the city’s safety, accessibility, diverse offerings and vibrant calendar of events, with Government-led initiatives and new attractions further enhancing Dubai’s appeal.”

This article was originally published in One Arabia.