Dubai’s hotel inventory grew to almost 152,300 rooms across 818 hotels in the first eight months of 2025, with occupancy and average daily rates (ADR) also increasing compared with the same period last year, according to new research by real estate advisory group, Cavendish Maxwell.
By Q3 2025, Europe was the only region with increased hotel construction, showing 171,589 rooms in construction (+5.2%) and 428,345 total under contract (+3.7%), according to CoStar's September data.
The Dubai Department of Economy and Tourism has introduced a programme to incentivise hotel development, offering 100% fee reimbursement for new establishments in high-growth areas for two years post-opening.
In the first half of 2025, the Madinah Region led Saudi Arabia in hotel occupancy rates at 74.7%. An economic report revealed an average daily rate of SAR 538 ($143.45) and revenue per available room reaching SAR 402, highlighting significant growth in tourism.
Knight Frank forecasts a vibrant UAE hotel market, driven by diverse regional and international investors. The sector saw strong growth, with RevPAR and ADR rising 11.9% year-on-year. Abu Dhabi led with 24% RevPAR growth. Hotel rooms are projected to reach 235,674 by 2030.
Arada has awarded the construction contract for the Rove Aljada hotel cluster, located within the AED35 billion ($9.5 billion) Sharjah megaproject. Spread across four blocks, the hotel and branded residences buildings will be completed by the end of 2027.
Dubai-based Sunset Hospitality Group has launched METT Singapore, its flagship property in Asia Pacific, located in the historic Fort Canning Park. This hotel combines colonial charm with contemporary design, featuring 84 suites and rooms designed by Jeffrey Wilkes.
Oman's hospitality sector showed strong performance through August 2025, with 3 to 5-star hotels experiencing an 8.2% increase in guest numbers to RO1.52 million ($3.9 million) and a 17.4% rise in total revenue to approximately RO175.4 million.
The Red Sea EDITION has officially opened on Shura Island, Saudi Arabia, marking its second establishment in the country after a debut in Jeddah.
RMJM, a leading global architecture and design network, has announced the completion of the concept design stage for the Azizi Venice 4-Star Hotel, a new waterfront hospitality project of leading UAE group Azizi Developments within the masterplan in Dubai South.
