Hospitality Industry in UAE Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Report Covers Top Hospitality Companies in UAE and the Market is segmented by Type (Chain Hotels and Independent Hotels) and by Segment (Service Apartments, Budget and Economy Hotels, Mid and Upper Mid Scale Hotels, and Luxury Hotels).

UAE Hospitality Market Size

UAE Hospitality Market Summary
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Study Period 2019- 2028
Base Year For Estimation 2022
Forecast Data Period 2023 - 2028
Historical Data Period 2018 - 2021
CAGR > 5.00 %
Market Concentration Medium

Major Players

UAE Hospitality Market Major Players

*Disclaimer: Major Players sorted in no particular order


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UAE Hospitality Market Analysis

The UAE Hospitality Market size is expected to grow from USD 7371.2 million in 2023 to USD 9459.8 million by 2028, registering a CAGR of 5% during the forecast period (2022-2028).

One of the country's largest sources of non-oil income is the tourism industry, which is reflected in the country’s hotel supply. At the top of the hotel supply chain, the United Arab Emirates is expected to welcome at least 130 premium sites l of 34,000+ rooms in the coming years.

Post-COVID-19, United Arab Emirates is accelerating its recovery journey by aggressively leveraging digital tools in marketing, research, and destination management. Adopting digital platforms and content provides an opportunity to reach a larger audience of both domestic and international tourists.

Dubai's hotel occupancy rate increased to 72% between January and November 2022, a significant increase from the 63% recorded in 2021. At the same time, the city's average daily rate increased by 22% from the previous year to USD 184. Abu Dhabi's occupancy rate increased to 69% in the first eleven months of 2022, from 66% in the same period of 2021, and ADR increased by 29% from USD 119.

The future of the hospitality sector appears bright for the United Arab Emirates. The UAE hospitality sector is investing around USD 32 billion to acquire 48,000 more hotel rooms to bring the total to 200,000. The sector’s increased interest in environmental, social, and corporate governance (ESG) issues inspires change and encourages sustainable practices across the industry. Paired with the government’s forward-thinking vision, UAE hotels have emerged stronger than ever after the economic slowdown brought about by the pandemic

UAE Hospitality Market Trends

Rising Tourism in the United Arab Emirates Bolsters the Growth Hospitality Sector

The economic upturn of the previous year and the commencement of major projects in Dubai has paved the way for strong tourism growth in 2022, setting Dubai on the path to achieving its growth goals over the long term. The year started with a bang for the tourism industry in the United Arab Emirates, as Dubai was named the world’s best-traveled destination at the top of the leaderboard at Tripadvisor Travelers’ Choice Best of the best destination awards 2023. The share of GDP to the tourism sector reached 10.14% in the first half of 2023.

Tourism continues to be at the heart of Dubai’s development strategy and is expected to play a significant role in the Dubai Economic Plan D33. The United Arab Emirates (UAE) has established itself as a world-class tourism destination, drawing in millions of visitors each year due to its dedication to innovation and development.

Hospitality Industry in UAE: Share of the GDP of the tourism sector, GDP in %, United Arab Emirates, 2018-2023

Luxury Hotel Segment Dominates the Hospitality Industry in UAE

The United Arab Emirates, the tourism capital of the Gulf States, is famous for its glitter and glamour. The place is being visited by people from all over the world looking for luxury and a luxurious lifestyle.

Revenue from Luxury hotels accounts for 53.7% in 2023. For the next few years, more than 130 premium sites with nearly 34,000 rooms are expected to be opened in the country's top-end hotel sector. The country’s reputation for luxury remains undimmed as far as forthcoming hotels go, with 64% of the high-end pipeline in the five-star category, equating to 83 sites.

With 68 properties to be completed this year, 52% of the premium pipeline is dominated by a trend toward more rapid delivery. There will be a significant cut in prices to come, starting with 27 sites opening in 2024, followed by just seven and five in 2025 and 2026. There are 23 projects without a delivery date or planned to open after 2026.

One of the most important developments in Dubai is The Heart of Europe, a self-sufficient luxury resort situated six kilometers out into the sea among the World Islands. Sixteen hotels and holiday resorts inspired by major European cities will form part of this new precinct developed by the Kleindienst Group.

Hospitality Industry in UAE: Number of 5-star Hotels in Dubai, 2015-2022

UAE Hospitality Industry Overview

The hospitality industry in the United Arab Emirates holds an excellent scope for newcomers to enter. One of the American hospitality giants, Marriott, established a strong base in the country with more than 55 hotels spread across all the region's major cities and offering around 16,000 rooms/keys to the supply. The market is also dominated by many domestic hospitality groups like Jumeirah Group, DAMAC Group, and Emmar Hospitality which are spread across Dubai, Abu Dhabi, Fujairah, Ras Al Khaimah, Sharjah, and Ajman.

UAE Hospitality Market Leaders

  1. Marriott International Inc

  2. Hilton Worldwide Holdings Inc

  3. Jumeirah Group

  4. Emaar Hospitality Group

  5. DAMAC Properties

*Disclaimer: Major Players sorted in no particular order

Hospitality Industry in UAE Concentration

UAE Hospitality Market News

  • April 2023: Dubai-based Hospitality Management Holding (HMH) Group set to launch 18 new hotels in the Arabian Travel Market, During its participation in the ATM-2023, the Group will showcase its projects in the hospitality sector across the region and sign new partnership agreements. The Group will utilize the platform to show its future strategies and expansion plans into foreign markets. The HMH Group manages 13 hotels and resorts in and outside the UAE market, with a total inventory of 2032 rooms.
  • March 2023: IHG Hotels & Resorts, one of the world’s leading hotel companies with more than 6,000 hotels, made waves with the opening of Voco Dubai The Palm, a brand-new beachfront hotel on the iconic Palm Jumeirah. The hotel has 138 rooms and features two dining options: Maison Mathis, a European restaurant, and Frenia, a rooftop pool bar set to open later in the year.

UAE Hospitality Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Rising Tourism in the United Arab Emirates Bolsters the Growth in Hospitality Sector

      2. 4.2.2 The Rise in the Mice Industry in the United Arab Emirates Drives the Hospitality Sector

    3. 4.3 Market Restraints

      1. 4.3.1 High Rentals in the United Arab Emirates Pose a Restraint to the Hospitality Sector

    4. 4.4 Market Opportunities

    5. 4.5 Value Chain/Supply Chain Analysis

    6. 4.6 Industry Attractiveness: Porter's Five Forces Analysis

      1. 4.6.1 Bargaining Power of Buyers

      2. 4.6.2 Bargaining Power of Suppliers

      3. 4.6.3 Threat of New Entrants

      4. 4.6.4 Threat of Substitutes

      5. 4.6.5 Intensity of Competitive Rivalry

    7. 4.7 Insights on Revenue Flow From the Accommodation and Food and Beverage Sector

    8. 4.8 Leading Cities In United Arab Emirates With Respect to the Number of Visitors

    9. 4.9 Investments (Real Estate, Fdi, and Others) In the Hospitality Industry

    10. 4.10 Technological Innovations In the Hospitality Industry

    11. 4.11 Insights on Shared Living Spaces Impact on the Hospitality Industry

    12. 4.12 Insights on Other Economic Contributors to the Hospitality Industry

    13. 4.13 Impact of Covid-19 on Hospitality Industry


    1. 5.1 By Type

      1. 5.1.1 Chain Hotels

      2. 5.1.2 Independent Hotels

    2. 5.2 By Segment

      1. 5.2.1 Service Apartments

      2. 5.2.2 Budget and Economy Hotels

      3. 5.2.3 Mid and Upper mid scale Hotels

      4. 5.2.4 Luxury Hotels


    1. 6.1 Market Concentration Overview

    2. 6.2 Company profiles

      1. 6.2.1 Marriott International

      2. 6.2.2 Hilton Worldwide Holdings

      3. 6.2.3 Emaar Hospitality Group

      4. 6.2.4 Rotana Hotels

      5. 6.2.5 DAMAC Group

      6. 6.2.6 Jumeirah Hotels & Resort

      7. 6.2.7 Hyatt Hotel Corporation

      8. 6.2.8 Al Habtoor Group

      9. 6.2.9 Majid Al Futtaim

      10. 6.2.10 Abu Dhabi National Hotels

      11. 6.2.11 Accor S.A.

      12. 6.2.12 Danat Hotels & Resorts

    3. *List Not Exhaustive
    4. 6.3 Loyalty Programs Offered By Major Hotel Brands


  8. 8. ABOUT US

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UAE Hospitality Market Research FAQs

The UAE Hospitality Market is studied from 2019 - 2028.

The UAE Hospitality Market is growing at a CAGR of >5% over the next 5 years.

Marriott International Inc, Hilton Worldwide Holdings Inc, Jumeirah Group, Emaar Hospitality Group, DAMAC Properties are the major companies operating in UAE Hospitality Market.

Hospitality in UAE Industry Report

Statistics for the 2023 UAE Hospitality market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UAE Hospitality analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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