UNITED ARAB EMIRATES: The United Arab Emirates’ hospitality sector is set to receive a timely increase in its hotel room capacity, with a recent projection indicating the addition of 9,200 rooms by the end of 2023. Of this total, 70 percent is to be located in Dubai.
This influx of new rooms will bring the total number of hotel rooms in Dubai to 154,000, marking a healthy 6.4 percent increase compared to 2022, as outlined in a recent report by Knight Frank.
“Dubai, which has emerged not only as the world’s most popular destination for two years running according to Trip Advisor, but the emirate has also earned the accolade of having the world’s highest occupancy levels during the first half of 2023 at 78 percent,” stated Faisal Durrani, Partner and Head of Research MENA, at the consultancy.
According to sources in the hotel industry, there is no expectation that the new capacity will remain vacant for long. Demand has remained consistently strong throughout the year, with operators successfully maintaining high occupancy levels even during the summer months. This explains the confidence surrounding the addition of all these extra rooms.
“A substantial 70 percent of the under-construction and final planning supply in Dubai belongs to the luxury and upper-upscale hotel segments, catering to discerning travellers,” stated Turab Saleem, partner and head of hospitality at Tourism & Leisure Advisory.
In the first half of 2023, Dubai welcomed 8.6 million tourists, representing a substantial 20 percent rise compared to the previous year, which underscores Dubai’s continued allure as a prominent global tourist destination. Internationally recognised hotel chains make up 67 percent of Dubai’s current lodging options, emphasising the city’s worldwide attraction.
In terms of the number of rooms, Accor, the hotel operator, holds the ‘top spot’ with 71,820 rooms currently in operation and an additional 49,510 rooms in the development pipeline, expected to be completed by 2030.
Following closely is Marriott International, with 63,790 rooms in operation and 52,790 rooms planned for development. IHG Hotels & Resorts boasts 35,140 rooms in operation and 22,120 more in development. Hilton Worldwide, with its existing 33,450 rooms, is set to expand further by adding another 39,860 rooms.
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