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The Knight Frank report shows that the UAE has 24,500 rooms in various stages of development.
The rise of the hotel sector is visible across the UAE with the addition of 9,200 rooms this year.
Dubai’s vibrant hotel sector, which has seen a notable increase in international tourist traffic in the first half, is receiving a major boost with the addition of more hotel rooms this year, a London-based global property consultancy said.
By the end of 2023, approximately 154,000 rooms will be operational in Dubai’s hospitality sector, a substantial increase of 6.4 percent from 2022, according to a report by Frankish Knight.
The rise of the hotel sector is visible across the UAE with the addition of 9,200 rooms this year. With an existing supply of 207,200 hotel rooms, the UAE has an additional 24,500 rooms in various stages of development, further consolidating its global leadership in the hotel sector, the consultancy said in a report.
“The UAE’s hotel inventory continues to expand, helping to support cities like Dubai, which has not only become the world’s most popular destination for two years running according to Trip Advisor, but the emirate has also earned the accolade of have the tallest hotel in the world. occupancy levels during the first half of 2023 at 78 percent,”
saying Faisal Durrani, Partner – Head of Research, Mena at Knight Frank.
Durrani said industry giants are driving this growth, with Accor securing the top spot. It offers 71,820 existing rooms and has 49,510 more in the pipeline that are expected to be delivered by 2030. It is closely followed by Marriott International, with 63,790 existing rooms and 52,790 planned; IHG Hotels & Resorts, with 35,140 current rooms and 22,120 in development; Hilton Worldwide, with 33,450 rooms and 39,860 nearby; Radisson Hotels, which offers 22,830 rooms and plans an additional 11,651; and Rotana Hotels, with 16,976 rooms and 10,807 in development.
Turab Saleem, Partner, Head of Hospitality, Tourism and Leisure Advisory at Knight Franksaid Dubai continues to dominate the UAE’s hotel landscape with 70 per cent of the country’s upcoming supply concentrated in the city.
“In the first half of 2023, Dubai welcomed 8.6 million tourists, a significant increase of 20 per cent compared to 2022. This increase underlines Dubai’s enduring appeal as a global tourism hotspot. Internationally branded hotels make up 67 per cent of Dubai’s existing offering, highlighting the city’s global appeal. A substantial 70 per cent of the supply under construction and final planning in Dubai belongs to the luxury and high-end hotel segments, which cater to the most demanding travellers.”
STR data cited by Knight Frank shows that the Dubai market as a whole recorded a 0.8 percent increase in RevPAR compared to July 2022, driven by a 6.8 percent increase in occupancy, but It was prevented from further growth by a 5.6 percent decline in ADR. Hotstats data for July 2023 showed that most segments recorded minor drops in ADR, apart from luxury hotels in the city centre, around the centre, Business Bay and SZR, which recorded a 2 .0 percent. Luxury beach resorts saw similar occupancy growth as other segments, but with a larger ADR decline of 13 percent.
News Source: Khaleej Times
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