Today's Edition
MAYS IBRAHIM (ABU DHABI)
The UAE’s hospitality market kicked off 2025 with strong growth across key performance indicators (KPIs), defying traditional seasonal patterns, according to JLL’s UAE Hospitality Market Dynamics for Q1 2025.
Abu Dhabi led the upswing, posting exceptional gains despite the Ramadan season being a traditionally slow period.
The UAE capital recorded a substantial 28.1% year-on-year increase in Average Daily Rate (ADR) for the year to date through March 2025.
This upward trend in rates propelled a 26.7% increase in Revenue Per Available Room (RevPAR), even as occupancy slightly decreased by 1.0 percentage point during the same period.
Building on this momentum, JLL anticipates a potential surge in new project launches across the emirate.
“The substantial increase in KPIs has enhanced the emirate’s commercial appeal to a broader spectrum of developers,” the report stated. “These improved rates now justify and support new hotel developments, effectively transforming Abu Dhabi into a more attractive market for hospitality investments.”
Hotel stock in Abu Dhabi remained stable at 33,100 keys in Q1, with no new completions. However, around 600 new keys are set to be delivered by year-end, and a total of 1,500 keys are expected to be added over the next three years.
Business travel is expected to be a key revenue driver for the hospitality sector, with luxury operators likely to command an advantage over others through high-end food and beverage offerings.
Other properties will continue to lean on their banqueting facilities and in-house guest spending to maintain profitability.
Dubai also recorded solid gains in the opening quarter of 2025. The emirate welcomed 5.31 million overnight visitors, marking a 2.5% increase from the same period last year.
ADR improved by 2.2%, while the average occupancy rate increased by 1.3 percentage points, pushing RevPAR up by 3.6%.
Dubai’s hospitality stock expanded to approximately 158,000 keys, with the delivery of approximately 1,800 keys in the first quarter. A further 4,700 keys, comprising of four- and five-star properties, are expected by the end of the year and an additional 4,600 keys are slated for delivery in the following two years.
