Cavendish Maxwell: Positive Outlook Reinforces Dubai’s Position as a Leading Hospitality Hub

Dubai

Cavendish Maxwell, the real estate consultancy firm, has emphasized a strong and positive outlook for Dubai’s hospitality sector in the coming years, supported by continued demand growth and strategic expansion across high-quality developments.

According to the firm’s latest study, Dubai’s hotel market is set to add approximately 9,300 rooms between 2026 and 2028 across 41 new properties. This expansion reflects ongoing confidence in the emirate’s tourism sector and its ability to attract both international visitors and global investment. By the end of 2028, the total number of hotels is expected to reach around 813, with capacity approaching 168,000 rooms.

The report indicates that Dubai continues to successfully align new supply with rising demand, supporting strong operating performance and maintaining solid occupancy levels. This balance has been a key factor in sustaining the sector’s growth and resilience.

Cavendish Maxwell also noted that 2025 witnessed well-planned expansion in hotel supply alongside a notable increase in visitor numbers. This trend helped reinforce the market’s strength, particularly in higher-end segments, where luxury and upscale hotels accounted for a significant share of new openings. At the same time, mid-scale properties continued to support demand linked to business travel and economic tourism.

Looking ahead, development plans show a clear focus on premium hospitality. Luxury hotels make up nearly 49.8% of projects under development, followed by upper-upscale properties at 28.6%. This direction reflects Dubai’s continued ambition to strengthen its position as a global destination for high-value tourism.

Several landmark projects are expected to launch in the near term, including Baccarat Hotel and Residences in Downtown Dubai and Six Senses Residences The Palm, Dubai. In addition, innovative concepts such as The Floating Venice and Kempinski Floating Palace are set to further enhance the diversity and appeal of Dubai’s hospitality offering.

The report highlights that Dubai’s growing appeal among high-spending international visitors, combined with a stronger focus on integrated hospitality experiences and wellness-driven concepts, continues to elevate the overall quality of the sector.

Recent data from Dubai’s Department of Economy and Tourism shows that the emirate had more than 154,700 hotel rooms as of January 2026 across 827 establishments. Five-star hotels accounted for the largest share at 37%, followed by four-star properties at 28%, underscoring Dubai’s strong positioning in the upscale and luxury segments.

Cavendish Maxwell affirms that Dubai’s hospitality sector is on a solid upward path, supported by sustained demand, premium developments, and a forward-looking vision that continues to strengthen its global leadership in tourism.

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