UAE hospitality market dynamics, Q2 2026

Hotel performance in Q2 2026 remained subdued with UAE-wide RevPAR declining 31.8% year-to-date through June.Sustained regional tensions compounded the impact of traditional summer seasonality, particularly affecting international arrival levels.

No new hotels entered the market in Abu Dhabi or Dubai during Q2 2026, with limited completions expected through year-end as operators adjust timelines while focusing on upgrading existing stock and await demand restoration before launching new properties.

Operators continued to roll out discounted room rates, staycation bundles, and value-added incentives aimed at UAE and GCC residents to offset the pullback in international arrivals.