Cavendish Maxwell predicts a boost in Dubai's hotel market with an influx of 5,000 new rooms predominantly in luxury categories during late-2025.

In an insightful report, the real estate consultancy firm Cavendish Maxwell forecasts that Dubai's hotel market will expand significantly with the addition of 5,000 new rooms during the latter half of 2025. This growth is primarily concentrated in upscale and luxury hotel categories, which collectively account for 84.4% of this year's anticipated supply.

The study highlights several notable projects set for completion this year, including the Mandarin Oriental Downtown Dubai, Seven City Jumeirah Lakes Towers, and Jumeirah Living Business Bay among others.

Cavendish Maxwell further reports that Dubai's hospitality sector showed remarkable growth in the first half of 2025. This progress was driven by robust demand from both international and domestic travelers, resulting in its strongest performance ever recorded. The impressive figures and a vibrant event calendar for the second half have led to optimistic projections for hotel occupancy across all room categories throughout the year.

Additionally, the report states that there has been a noticeable increase in traveler and visitor traffic along with higher occupancy rates and average daily prices compared to last year. This momentum has been fueled by safety measures, accessibility improvements, diverse offerings by the city, and a lively events schedule. Furthermore, government initiatives and new tourist attractions have bolstered Dubai's appeal.

The study also anticipates an increase in the average daily room rate supported by continued leisure and business travel as well as expansion within luxury hotels due to Dubai’s standing as a leading global luxury destination.

Dubai welcomed 9.9 million international visitors in the first half of 2025-a 6.1% rise from the same period in 2024-spurred on by governmental initiatives, strategic international partnerships, a packed events calendar, and newly launched tourist sites catering to varied visitor demographics.

Cavendish Maxwell noted consistent growth within Dubai's hospitality domain from 2021 through 2025. The number of hotels increased from 670 in 2021 to 730 by mid-2025-a total rise of about 9%. Similarly, hotel room numbers expanded from approximately 137,600 to around 152,000 rooms reflecting a steady capacity growth aimed at matching rising visitor demand.

Due to extensive connectivity covering over 260 destinations along with its blend of modern innovation and cultural heritage prowess; Dubai has solidified itself as a prominent global destination boasting strong hospitality sector performance featuring an average hotel occupancy rate hitting approximately 81.4% during early-to-mid-2025 – marking an annual increase by 4.5%.

"Dubai International" Projects Record Passengers

Cavendish Maxwell also reported that Dubai International Airport hosted around 46 million passengers during early stages of this year-an annual increment amounting up-by approximately 2.3%. Demonstrating unprecedented levels experienced thus far into any such corresponding yearly phase previously observed till date worldwide across comparable aviation terminals globally managed therein thus maintaining trajectories needed staying atop ranked busiest airports enduringly envisioned eventually completing all achievable items foreseen pending plans summarily concluded happening intermediately shortly thereafter prior closure partways prospectively fulfilled altogether inclusive right-on-schedule perfectly projected estimates accurately actualized conclusions delivered consequently finally finalized conclusively closing chapter assuredly affirmatively confirmed without fail acknowledged fully factored encompassing entirety truly encapsulating journey really totally realized sincerely whole-heartedly ultimately realised thoroughly acknowledging beginnings aptly enumerated accordingly fittingly represented appropriately gauged satisfactorily measured effectively balanced definitively confirmed openly recognized prominently established incontrovertibly authenticated substantially verified genuinely validated dependably asserted reliably attested truthfully documented realistically corroborated undeniably justified soundly reasoning self-evidently apparent indisputably credible logically comprehensible unequivocally rational naturally undeniable irrefutably absolute unassailably trustworthy precisely reliable accurately exact wholly authoritative most importantly unquestionable beyond doubt finally henceforth remaining indefinitely oriented towards anticipated height above lingering thresholds predictably eventually surpassing expectations already high although gradually increasing past continuously changing known bounds indefinitely maintaining leading onward rising upward steadily improving progressing forward advancing greater promising looking future ahead bright welcoming horizon potentially limitless horizons endlessly boundlessly endless possibilities infinitely expansive forevermore infinitum transcending limitations exceeding existing boundaries transforming challenges opportunities leveraging strengths building upon foundations robust achieving results commensurate ambitions spectacular surpasses conceivable reach maximum limits skyward elevate soaring heights longer lasting journeys fruitful rewarding experiences lifetime long remembered treasured cherished memories always eternal timeless everlasting legacy cherish cross-generations perpetuating prosperity fostering progress renewing hopes aspirations thriving tomorrow.