Dubai’s hotel sector is heading into the second half of 2025 with solid momentum, as around 5,000 new hotel rooms are expected to be added by year-end. According to a report from real estate consultancy Cavendish Maxwell, most of these upcoming rooms — nearly 84.4% — fall within the luxury and upscale categories.

These additions come as part of a broader wave of hospitality projects, with several key developments nearing completion. Among the notable names are:

• Mandarin Oriental Downtown Dubai

• Seven City in Jumeirah Lakes Towers

• Jumeirah Living Business Bay

• Alongside other high-end projects in various parts of the city

A Strong Start to the Year

The report points out that Dubai’s hospitality market saw impressive performance during the first half of 2025, driven by strong interest from both international and domestic travelers.

Hotel occupancy, visitor numbers, and average room rates all improved compared to the same time last year, making this one of the best-performing periods the city has seen. With a full calendar of events lined up for the remainder of the year — from major conferences to cultural festivals — expectations remain high for continued growth through the end of 2025.

Demand Keeps Pushing Prices Higher

Thanks to a steady flow of leisure and business travelers, and a growing number of luxury hotel openings, the average daily rate (ADR) is projected to keep climbing.

Dubai’s reputation as a leading global destination for luxury travel plays a big role here. Visitors are increasingly seeking out premium experiences, and the city is responding with more upscale options, better service, and modern hotel facilities.

Tourist Arrivals Continue to Rise

In just the first six months of 2025, Dubai welcomed about 9.9 million international visitors, marking a 6.1% increase over the same period in 2024.

This growth has been supported by several key drivers:

• Strategic partnerships with international tourism bodies

• Government-backed initiatives aimed at boosting visitor numbers

• A growing number of attractions catering to all age groups and travel interests

Hotel Supply Expanding with Demand

Dubai’s hospitality industry has been steadily expanding over the last few years. Between 2021 and mid-2025, the number of hotels rose from 670 to 730, while the total number of hotel rooms grew by around 10.6%, increasing from approximately 137,600 to 152,000.

This expansion isn’t just about growth for growth’s sake — it’s a calculated effort to keep pace with rising demand, as the city continues to attract millions of visitors annually.

Dubai Airport Also on Track for Record Numbers

Tourism growth in Dubai is closely tied to air travel — and the city’s main airport is setting records of its own. Dubai International Airport welcomed 46 million passengers in the first half of this year, up 2.3% from the same period last year.

If the current trend continues, the airport is expected to handle around 96 million passengers by the end of 2025, helping it maintain its title as the world’s busiest airport for international traffic.

Looking Ahead

With direct air links to more than 260 cities worldwide, world-class infrastructure, and a growing blend of modern luxury and authentic cultural experiences, Dubai continues to position itself as one of the top travel destinations on the planet.

As 2025 enters its final stretch, the city’s hospitality sector is not only expanding — it’s evolving to meet the expectations of tomorrow’s travelers.