UAE hospitality sector caps strong 2025 on tourism boom

The UAE’s hospitality sector ended 2025 on a high note delivering outstanding results, buoyed by strong tourism inflows across all major markets, according to CBRE Middle East, a global leader in commercial real estate services. 

Dubai welcomed 17.5 million international visitors during the first 11 months, while Abu Dhabi and Ras Al Khaimah also recorded year‑on‑year increases in visitation. 

The country’s real estate markets have continued to expand at pace through the final quarter of the year, supported by resilient non‑oil economic activity, strong population growth, and sustained domestic and international investment appetite, stated CBRE in its report.

The UAE's hotel performance improved accordingly, with Dubai achieving 80.4% occupancy, accompanied by growth in both the average revenue generated per occupied room (ADR) and revenue per available room (RevPAR), it added. 

According to CBRE, Abu Dhabi mirrored this momentum, reporting 80% occupancy and a 22% increase in RevPAR, driven by rising demand for luxury offerings and cultural experiences. 

The northern emirate of Ras Al Khaimah delivered its strongest year on record, supported by business tourism and large‑scale events, it stated. 

Nationally, co‑Star data confirmed the upward trend, with UAE‑wide occupancy rising over 80%, ADRs increasing over 10%, and RevPAR up over 14%, it added.

On the solid performance, Matthew Green, the Head of Research at CBRE Mena, said: "The UAE real estate market continues to demonstrate remarkable resilience across all major sectors. Demand fundamentals remain exceptionally strong, supported by ongoing economic diversification, robust population growth, and rising investor confidence."

"Supply constraints are a common theme across office, industrial, and select residential sub‑markets, and this imbalance will continue to shape performance through 2026. As the UAE advances its long‑term development strategies, the real estate sector is increasingly positioned as a key pillar of sustainable economic expansion," he added.