UAE Records 105 Hotel Projects Under Construction by End of Q1 2026

Dubai

The UAE hotel market continued to show positive momentum during the first quarter of 2026, as new data confirmed ongoing growth in the number of hotel projects under construction across the country.

According to Lodging Econometrics, a US-based company specialized in real estate consulting and hotel market analysis, the UAE had 105 hotel projects under construction by the end of the first quarter of 2026. These projects include a total of 25,148 rooms, highlighting the continued activity in the country’s hospitality sector and the steady demand for new hotel developments.

The data showed that the UAE accounted for around 15% of all hotel projects under construction in the Middle East by the end of the first quarter. In terms of room count, the country represented nearly 14% of the total rooms currently being developed across the region.

Lodging Econometrics noted that the hotel construction sector in the Middle East showed clear resilience during the first three months of 2026, despite regional tensions that began in February. The company reported a 13% increase in the number of projects and a 12% rise in the number of hotel rooms compared with the same period last year.

During the first quarter of 2026, the Middle East saw the opening of 11 new hotels, offering a combined total of 2,516 rooms. The company also expects 80 additional hotels to open across the region during the remainder of the year, adding 15,479 rooms.

Based on these forecasts, the total number of new hotels expected to open in the Middle East during 2026 could reach 91 hotels, comprising 17,995 rooms. Lodging Econometrics also expects 98 more hotels to open by the end of 2027, adding 20,372 rooms across the region.

These indicators come as the UAE tourism sector continues to deliver strong performance. According to data from the Ministry of Economy and Tourism, the number of hotel rooms in the country reached 217,000 by the end of 2025.

Hotel establishments in the UAE welcomed around 32.34 million guests in 2025, the highest annual figure ever recorded in the history of UAE tourism. This compares with 30.75 million guests in 2024, representing a growth rate of 5.2%.

The number of hotel guest nights also rose to more than 110.62 million in 2025, compared with 104.45 million in 2024, marking an increase of nearly 5.9%. Hotel revenues in the UAE market grew by 9.7% to reach around AED 49.21 billion, while the hotel occupancy rate stood at 79.3%.

These figures confirm that the UAE hotel market continues to benefit from strong tourism demand, the diversity of destinations across the country, and ongoing growth in the business, exhibitions, and events sectors. The continued development of new hotel projects also supports the country’s ability to welcome larger numbers of visitors in the coming years.

With 105 hotel projects currently under construction, the UAE remains one of the most active hospitality markets in the Middle East, supported by advanced tourism infrastructure, sustained investment, and strong operational indicators that reflect the sector’s stability and growth.

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