UAE Hospitality Market Dynamics, Q2 2025

The UAE’s hospitality continued to perform strongly in Q2. Despite the fact that this period is traditionally considered to be the low season, we have seen robust performance across all key performance indicators, signalling a shift in the market's seasonal patterns.

Healthy demand enabled strong performance across all price points, including budget, midscale and luxury segments. Shifting from luxury driven to a more balanced and sustainable market.

The introduction of new, design-led and amenity rich, premium-quality properties in the current market, particularly within Dubai's luxury and beachfront segments, is enabling operators to set new benchmark rates, with dated developments struggling to compete in terms of quality, standards and amenities offered.