Even with a flood of new rooms entering the market, Dubai’s hotel industry is experiencing an impressive milestone. By the end of April 2025, the average revenue per room—commonly known as RevPAR—reached a high of AED 548. That’s up from AED 511 in April 2024 and AED 500 in April 2017, marking nearly a 10% rise over nine years.

Here’s what’s intriguing: between April 2017 and April 2025, Dubai’s hotel capacity swelled from about 104,400 to around 153,500 rooms—an addition of roughly 50,000 rooms. Yet, despite the increased supply, hotel performance didn’t just hold its ground—it thrived.

Strong Demand, Better Returns

Fathi Khogaly, Regional VP of Hyatt and GM of Grand Hyatt Dubai, points to healthy occupancy rates as the driving force. Guests are flowing in from markets across the globe, filling rooms and lifting profitability. He credits the city’s ability to adapt, innovate, and tailor its hospitality offerings to varied needs—whether leisure travelers, families, or business visitors.

Tourism Numbers Back the Trend

January through April 2025 saw Dubai welcome a record 7.15 million international tourists, up 7% from 6.68 million during the same stretch in 2024. Visitors also stayed a bit longer on average—3.84 nights compared to 3.81 nights last year. That added up to approximately 15.29 million guest nights, compared to 14.70 million in 2024—a roughly 4% bump.

A Resilient Growth Story

What this amounts to is more than just good numbers. It’s a story of a market that has grown stronger while growing bigger. Dubai’s commitment to top-notch tourism infrastructure and a rich array of hotel experiences has paid off—fueling both visitor enthusiasm and steady returns for hoteliers. In short, the city isn’t just expanding—it’s thriving.