Stirling Hospitality Advisors, a leading boutique advisory firm and subsidiary of Marjan Hospitality, has released the eighth edition of its RAK Investment Pulse report, revealing that Ras Al Khaimah is entering a new phase of its tourism and investment cycle, where demand growth is set to outpace hotel supply from 2027 onwards, creating a clear and time-sensitive opportunity for investors.

The report shows that 2025 marked a structural change for the Emirate’s hospitality market, as growth shifted decisively toward higher-value, international demand.

Occupancy reached 75.0%, while average daily rates climbed to AED 618.1 ($168.30), driving RevPAR growth of 11.5% year-on-year.

Total demand reached 4.8 million room nights, generating AED 1.06 billion in room revenue and AED 1.72 billion in total hotel revenue, up 12% compared to 2024.

This performance positioned Ras Al Khaimah as the third-best RevPAR performing hotel market in the UAE and fifth across the Gulf, reinforcing its progress toward the 3.5 million annual visitor target by 2030 and highlighting a structural shift toward more resilient, quality-led growth.

The growth of Ras Al Khaimah’s hospitality sector continues to be premium-led, with five-star hotels accounting for more than half of existing keys.

While development momentum remains strong with over 2,000 keys announced in 2025 and around 2,500 keys scheduled by 2027, upcoming supply is strategically concentrated on the luxury market.

The three- and four-star segments continue to be a key area of opportunity for emirate wide tourism diversification, supported by healthy, although still undersupplied pipeline activity, and a progressively diversifying demand base.

A prominent finding of the report is the emerging demand–supply gap, with cumulative demand forecast to exceed supply by approximately 1,300 hotel keys by 2030.

Undersupply is expected to begin materialising from 2027 onwards, creating a defined investment window for projects delivered between 2026 and 2029.

This imbalance is expected to support strong operating performance for existing hotels, while also increasing opportunities across serviced apartments, short-term rentals, and branded residential formats that can absorb peak demand.

Commenting on the findings, Tatiana Veller, Managing Director of Stirling Hospitality Advisors, said: “Ras Al Khaimah has reached a stage where the story is no longer just about growth, but about structure, timing, and long-term value creation. What we are seeing now is a market moving into a more disciplined phase, where revenue quality is improving, supply is becoming more defined, and investors have clearer visibility on where and when opportunities will emerge. With this report, we aim to provide investors with the clarity and insight needed to make informed decisions as the market enters this next cycle.”

Beyond hospitality, the report also highlights how Ras Al Khaimah’s broader liveability agenda is reinforcing long-term demand. Continued investment across healthcare, education, employment hubs, and transport connectivity is supporting population growth, with the Emirate’s population projected to reach approximately 650,000 by 2030 and 730,000 by 2034, adding further depth to the investment case across hospitality and mixed-use assets.

Drawing on extensive market analysis and insights from public and private sector stakeholders, the eighth edition of RAK Investment Pulse reinforces Ras Al Khaimah’s position as one of the region’s most compelling emerging tourism and investment destinations, offering visibility, resilience, and a rare opportunity to deploy capital ahead of the next acceleration phase.-TradeArabia News Service