Latest news with #Dh236
Al Etihad
18-03-2025
- Business
- Al Etihad
Abu Dhabi, Dubai to see thousands of new hotel rooms in 2025 amid tourism boom
19 Mar 2025 02:07 KHALED AL KHAWALDEH (ABU DHABI)Abu Dhabi and Dubai are set to witness a major expansion in their hospitality sectors, with thousands of new hotel rooms expected to be added in 2025. Both emirates are investing heavily in tourism as part of broader economic diversification UAE capital's hotel market is poised to grow beyond 50,000 rooms by 2030, according to a previous announcement of Saud Al Housani, Undersecretary of the Abu Dhabi Department of Culture and emirate is projected to see more than 2,300 new hotel rooms by the end of the year, bringing the total past the 36,000 mark, Al Housani said Dubai, more than 11,300 hotel rooms will be added by 2027, with nearly 4,620 slated to open in 2025 alone, according to real estate advisory firm Cavendish Maxwell. Highest Growth in the UAE Abu Dhabi is the fastest-growing hospitality market in the country in terms of occupancy and average daily rates (ADR), based on the Cavendish Maxwell in Abu Dhabi city hotels and resorts topped UAE growth rates at 14.5% and 14.4%, respectively. Occupancy rates were up 10.5%, marking the highest growth seen across the country."In 2024, tourism contributed Dh236 billion - up from Dh220 billion in 2023 - to the UAE's economy, representing 12% of the nation's GDP. This growth highlights the sector's significant impact, reinforcing its vital role in the country's economic expansion," said Gergely Balint, Associate Partner and Commercial Valuation and Hospitality expert at Cavendish Maxwell. Luxury Dominates the Sector These growth forecasts come on the heels of a record-breaking 2024 for both Abu Dhabi and Dhabi hotels welcomed nearly 4.3 million guests in the first nine months of 2024 while Dubai saw 18.72 million overnight visitors and 78% hotel occupancy Maxwell found that luxury accommodations continue to dominate the sector, especially in Dubai's hotel market, with 70% of its existing inventory classified under the "luxury, upper upscale, and upscale" categories. This trend is expected to continue in 2025, with nearly 70% of new rooms falling within the "luxury and upper upscale" segments, the firm added. Elsewhere in the UAE, Ras Al Khaimah recorded a 14% ADR increase, benefitting from renovations and upcoming projects like the Wynn Al Marjan Island resort, according to Cavendish Maxwell. Fujairah, aiming to attract 500,000 annual visitors, is investing in its cultural heritage to boost tourism.
Zawya
17-03-2025
- Business
- Zawya
Dubai to deliver over 11,300 new hotel rooms by 2027, with nearly 4,620 in 2025
Tourism contributed AED236 billion to UAE economy, 12% of GDP, last year Dubai – More than 11,300 new hotel rooms are set to open across Dubai by 2027, with almost 4,620 coming to the market this year, says leading real estate advisory group, Cavendish Maxwell. Dubai added 4,255 rooms across 19 hotels to its inventory in 2024, representing year-on-year growth of almost 3%. As of December, the city boasted 724 hospitality establishments, with 151,245 keys between them, according to Cavendish Maxwell's Dubai hospitality sector 2024 market performance report. Hotel inventory will grow by 3.1% this year, with 3.4% growth predicted for 2026. By the end of 2027, Dubai is set to have more than 162,600 rooms across 769 hotels. High end accommodation continues to dominate Dubai's hotel offering: in 2024, almost 70% of room supply fell in the high end (Luxury, Upper Upscale and Upscale) category. Of the upcoming supply for 2025, nearly 70% will be in the Luxury and Upper Upscale segment, the research shows. Gergely Balint, Associate Partner, Commercial Valuation and Hospitality expert at Cavendish Maxwell, said: 'Dubai's world-leading hospitality and tourism sectors set more records and reached new milestones in 2024, with 18.72 million overnight visitors, adding a string of prestigious new tourism-industry awards to its name and 4,255 new hotel rooms coming to the market. We can look forward to continued strong performance in 2025, with another 20 hotels and resorts due to open, further highlighting Dubai's position as a world-leading hub for tourism, hospitality, business and leisure. These impressive figures and robust growth align with the strategic vision of Sheikh Mohammed Bin Rashid Al Maktoum, as outlined in the Dubai Economic Agenda D33, which aims to position Dubai among the world's top three global tourism destinations.' The number of overnight visitors to Dubai grew 9.1% last year, up from 17.15 million in 2023. The emirate's hospitality and tourism momentum was further underpinned by its outstanding performance at the 31st Annual World Travel Awards in late 2024, where Dubai was named the world's leading shopping and exhibition destination, Mina Rashid took the title of world's leading cruise port and Dubai International Airport was recognised as the world's leading airport. Gergely Balint added: 'This continued international recognition strengthens investor confidence and further cements Dubai's status as a premier hub for hospitality and real estate development. The emirate continued to experience robust growth in the tourism sector, surpassing pre-pandemic levels and positively contributing to economic growth. In 2024, tourism contributed Dh236 billion, up from Dh220 billion in 2023, to the UAE's economy, representing 12% of the nation's GDP. This growth highlights the sector's significant impact, reinforcing its vital role in the country's economic expansion.' Occupancy rates Dubai's hotel occupancy levels remained steady, rising to 78% in 2024 – an increase of 1% on 2023 – with the Luxury and Upper Mid-scale segments seeing the biggest gains of 3% and 2.4% respectively. Average Daily Rates (ADR) ADRs in Dubai reached AED690, a slight increase of 0.2% on 2023, indicating pricing stability in Dubai's hospitality market. Upscale and Upper Mid-scale categories saw ADR growth of 0.7% and 0.4% respectively, while there was a decline of 1.7% among Upper Upscale hotels. Those in the Luxury segment witnessed a drop of 1.9% in ADR year-on-year, despite a 3% increase in occupancy, suggesting that increased demand came at the expense of pricing. Revenue Per Available Room (RevPAR) Average RevPAR rose by 1.3% in 2024 compared to 2023, primarily driven by higher occupancy levels. While all segments saw growth, the Upper Midscale category led at around 1.9%. Dubai tourism statistics and source markets Dubai welcomed a record-breaking 18.7 million visitors in 2024, with Western Europe the biggest source market, at 20% (3.7 million). South Asians accounted for 17%; GCC tourists 15% and Eastern Europeans 14%. Northeast and Southeast Asia saw the biggest year on-year growth, up almost a quarter on the previous year, driven largely by the resurgence of outbound tourism from China. Dubai International Airport (DXB) set a new benchmark in global aviation, welcoming 92.3 million passengers in 2024 – its highest annual traffic on record and a 6.2% jump on 2023. December was the busiest month, with 8.2 million people passing through DXB. Other parts of the UAE Outside of Dubai, there was a surge in rate-driven hotel performance across the UAE. All Emirates secured an increase in ADR, with Abu Dhabi city hotels and resorts leading the growth at 14.5% and 14.4%, respectively. Ras Al Khaimah recorded a 14% year-on-year ADR increase, potentially driven by the completion of renovation of the Waldorf Astoria, which impacted market performance the previous year. ADR was up 4% in Fujairah. The strongest occupancy growth was at Abu Dhabi city hotels (up 10.5%), due to increased demand from corporate travel, the Meetings, Incentives, Conferences and Events (MICE) sector, major events and government-backed tourism initiatives. There was a slight drop in occupancy in Ras Al Khaimah, where new openings such as the Anantara Mina Al Arab Resort and the Sofitel Al Hamra Beach Resort brought more rooms to the overall offering. RAK achieved a record 1.28 million visitors last year, up nearly 5% year-on-year. The upcoming Wynn Al Marjan Island resort, set to open in 2027 with the Gulf's first gaming resort, has spurred significant hotel development in the area and is expected to boost RAK tourism in the long term. In Fujairah, where occupancy remained stable, the Government has introduced several initiatives to boost tourism, including the promotion of key archaeological sites such as Al Bidya Mosque, to help attract its target 500,000 visitors per year. About Cavendish Maxwell Cavendish Maxwell is one of the Middle East's leading real estate advisory groups, with offices in Dubai, Abu Dhabi, Sharjah, Ajman, Kuwait City and Muscat. The company is regulated by the Royal Institution of Chartered Surveyors (RICS) and offers a full range of property-related services, including valuation, strategy and consulting, research, project management and building consultancy, investment and commercial agency expertise. With a team of experienced professionals and a commitment to delivering exceptional service, Cavendish Maxwell has established itself as a trusted advisor in the regional real estate market.
