Do you know that due to the expansion of the hospitality sector, Dubai will have a total of 154,000 rooms by the end of this year?

As per the research made by Knight Frank, a global real estate consultancy firm, 9200 new rooms will be in the hospitality sector in the UAE by the end of the current year. The room surge indicates the significant role played by the country’s hospitality industry. Around 154,000 rooms will be operating in Dubai’s hotels. This is around a 6.4% increase from 2022.

Faisal Durrani, Partner- Head of Research, MENA, also explained that UAE’s hotel inventory is expanding significantly, helping Dubai, one of the most popular destinations for the last two years, as per Trip Advisor. Still, Emirates also earned the designation to have the World’s highest occupancy level during the 1st half of 2023 at a rate of 78%.

The Major Reasons behind This Growth

The leading industry superpowers are driving this growth. Accor has 71,820 existing rooms, and 50,000 more are in the pipeline and to be completed by 2030. It secures the top position in the list.

Marriot International follows it with 63,790 existing rooms and 52,000 planned to be completed this year.

IHG Hotels & Resorts has 35,000 current rooms, and 22,000 are in development. Hilton Worldwide has 33,500 rooms and around 40,000 in the development stage. Radisson Hotels has 22,830 rooms with plans for an additional 11,000, and Rotana Hotels currently has 17,000 rooms and 10,560 in the development stage.

The Current Scenario of Dubai’s Hospitality Market

Turab Saleem, The Partner and head of Hospitality, Tourism and Leisure Advisory, explains that Dubai dominates the UAE’s hospitality landscape. Around 70% of the country’s upcoming sectors are concentrated in this city only. In HI 2023, Dubai witnessed 8.6 million tourists, an increase of 20%

from 2022.

The International branded hotels contribute around 68% of Dubai’s supply, reflecting the city’s global appeal.

How the Luxury and Upscale Segment Flourishes alongside Hotel Rooms Expansion

With an existing supply of about 207,200 hotel rooms and about 24,000 rooms in the development stage, this place is making its prominent position in the global leadership in the hospitality sector.

As per the STR data given by Knight Frank, Dubai Market recorded a 0.8% increase in RevPAR as compared to July 2022, a 6.8% increase in occupancy level but a 5.6% decrease in ADR. The luxury accommodations and beach resorts also witnessed an increase in occupancy but a high decrease in ADR levels.

The ADR and Occupancy levels will vary with the growth of the hospitality sector. Still, the hospitality sector has witnessed a good rise in UAE, and more and more students are enrolling in hospitality courses to have a brighter future globally and internationally. If you want to be in this industry with lucrative salary packages and opportunities to travel and settle globally, join a reputed hotel management institute like HOTS, Hotel Management Institute in Kolkata.