Dubai to add 9,300 hotel rooms, create up to 13,900 new jobs by 2028

Dubai is expected to add 9,300 new hotel keys between 2026 and 2028, creating thousands of new jobs in the hospitality sector.

According to Cavendish Maxwell, the emirate is projected to add 4,600 new hotel rooms in 2026, compared to 3,400 last year, with 21 new hotels scheduled to open this year.

Data shows that Dubai will add 2,900 new hotel keys in 2027 and 1,800 in 2028.

Industry executives say 1.0 to 1.5 direct jobs are created per hotel room, with luxury hotels often requiring up to 1.5 or more employees per room. Budget hotels, by contrast, typically require around 0.5 to 1 staff per room.

As most of Dubai’s upcoming hotels are in the luxury segment, industry executives estimate that an average of 1.3 to 1.5 jobs per room will be created for the 9,300 new hotel rooms. This translates into approximately 12,000 to 13,900 new jobs in the emirate’s hospitality sector.

Dubai aims to further accelerate visitor growth in 2026 through expanded marketing campaigns, strengthened airline and hotel partnerships, and initiatives spanning cultural festivals, adventure experiences, business conference incentives, and curated luxury packages. These efforts are aligned with Dubai’s long-term ambition under the D33 Economic Agenda to become one of the world’s top three destinations for both business and leisure travel by 2033.

Cavendish Maxwell data shows that the emirate’s hotel inventory reached 158,700 keys across 770 establishments in 2025, with nearly 70 per cent in the high-end category.

Ten new hotels entered the market last year, representing an increase of 1.3 per cent compared to 2024.

The report added that high-end hotels — including upscale, upper-upscale and luxury categories — accounted for nearly seven in 10 properties at the end of 2025, while around 30 per cent fell within mid-range and more affordable segments. Almost 90 per cent of hotels slated for delivery this year are in the higher-end categories.

Occupancy, rates

Vidhi Shah, director and head of commercial valuation at Cavendish Maxwell, said the emirate’s tourism and hospitality sectors have continued to perform strongly in 2025.

“The city’s diverse offerings – including an expanded events calendar, a growing portfolio of hotels and resorts, adventure experiences, globally renowned shopping festivals, and a world-class dining scene – have driven a shift in travel behaviour, with tourists moving beyond traditional sightseeing towards high-impact, experiential travel,” she said.

Dubai welcomed 19.6 million visitors last year, with Western Europe retaining its position as the largest source market at 21 per cent. The GCC ranked second at 15.3 per cent, followed by CIS and Eastern Europe (14.8 per cent), South Asia (14.7 per cent), Mena (11.1 per cent), North and Southeast Asia (9.5 per cent), the Americas (7.1 per cent), Africa (4.6 per cent), and Australasia (2 per cent).

Hotel occupancy in Dubai reached an average of 81 per cent last year, marking an average annual growth of 3.8 per cent. Upscale hotels recorded the biggest increase in occupancy (4.9 per cent), followed by the luxury segment (4.5 per cent). The highest occupancy rate, at 84.4 per cent, was seen in the upper midscale segment.

Average daily rates (ADR) climbed to Dh746, an increase of 8.7 per cent compared to 2024, with the upper midscale segment recording the strongest growth at 10.4 per cent. 

This article was originally published in Khaleej Times.