UAE hotel sector posts strong gains as visitor numbers rise in 2025

The UAE’s hospitality sector recorded another period of solid expansion in the first nine months of 2025, with hotels welcoming 23.27 million guests, according to data released by the state news agency WAM.

The total was 4.9 per cent higher than in the same period of 2024 and generated more than 79.3 million booked room nights, reflecting continued demand from both international and domestic travellers.

Abdulla bin Touq Al Marri, Minister of Economy and Tourism, said the performance underlined the UAE’s standing as one of the world’s most competitive tourism markets.

UAE tourism growth

Marking the country’s 54th Eid Al Etihad, he said the sector’s results further consolidate the Emirates’ position among the top destinations for visitor spending, citing its ranking among the world’s seven leading markets for international tourism expenditure, according to WAM.

Hotel revenues reached AED 35.9 billion, equivalent to about $9.78 billion, representing a 7.2 per cent rise year on year.

The number of available rooms also increased, climbing to 216,248 across 1,246 properties nationwide. This expansion supported broader growth in the sector as capacity continued to scale in response to sustained demand.

Occupancy rates stood at 79.2 per cent over the nine-month period, a gain of 1.8 percentage points compared with last year. Officials attributed the improvement to stronger international visitor arrivals and ongoing momentum in domestic tourism.

Average length of stay edged up from 3.38 nights to 3.41 nights, indicating that travellers are spending slightly longer exploring the country’s tourism offerings. The total number of occupied rooms rose by 3.5 per cent to reach 46.17 million.

The average daily rate (ADR) also increased. WAM reported that ADR climbed 4.2 per cent from AED 534 to AED 557, showing firm pricing power and effective yield management across market segments.

Officials said the first nine months of 2025 demonstrated the resilience and competitiveness of the UAE’s tourism ecosystem as it continues to attract record numbers of travellers while expanding its hospitality infrastructure to meet future demand.