UAE Hospitality Market Dynamics, Q1 2026

Hotel market key performance indicators remained positive through February 2026, but the regional conflict disrupted air connectivity, reducing flight volumes significantly compared to pre-conflict levels.

As part of a broader AED 1 billion economic support package, the government implemented measures to ease short-term financial pressures and support hotel liquidity through payment deferrals on room sales fees, F&B charges, and Tourism Dirham fees.

Hotels adopted dual strategies to navigate lower occupancy, selective property closures for accelerated renovation programmes, and introduction of competitive pricing and staycation packages targeting domestic demand.