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Dubai hospitality market performance H1 2025
Friday, 7th November 2025
Source : Cavendish Maxwell

Dubai was officially recognised as the first Certified Autism Destination™ in the Eastern Hemisphere, demonstrating its commitment to accessible and inclusive tourism.

The Emirate’s safety credentials also received global recognition, with Dubai placing third and Abu Dhabi first in Numbeo’s city-level safety index, reinforcing the UAE’s position as one of the world’s safest destinations.

This reputation for safety and inclusivity helped drive strong tourism growth in H1’2025. Dubai welcomed 9.9 million international visitors, up 6.1% from the same period in 2024.

The increase was also fuelled by Government initiatives, strategic international partnerships, a packed events calendar, and new attractions catering to diverse visitor profiles. With direct connections to over 260 destinations and its blend of modern innovation and cultural heritage, Dubai solidified its status as a premier global hub.

Reflecting this momentum, the hospitality sector recorded strong performance, with hotel occupancy reaching 81.4% in H1’2025, an increase of 4.5% year-on-year. Average Daily Rate (ADR) also climbed 5.5% to AED 754.5, supported by both international arrivals and domestic staycations.

This report examines the key drivers behind Dubai’s robust performance, analyses trends in occupancy and average daily rates, and provides an outlook for the hospitality market through the remainder of 2025.

Market Snapshot for H1 2025

  • International visitors: 9.9 million (+6.1% Y-on-Y)
  • Average Daily Rate (ADR): AED 754.5 (+5.5% Y-on-Y)
  • Occupancy Rates: 81.4% (+4.5% Y-on-Y)
  • Estimated Upcoming Hotel Supply (H2’2025): Hotels: 19 & Rooms: ~5,000

Dubai Airport Passenger Traffic

In the first half of 2025, Dubai International (DXB) handled 46 million passengers, a 2.3% year-on-year increase. Despite temporary airspace disruptions in May and June, the airport posted its busiest first half on record, driven by its extensive connectivity to more than 260 destinations across 107 countries.

By year-end, DXB is projected to handle around 96 million passengers, keeping it on track to remain the world’s busiest international airport.

Dubai World Central (DWC) also continued to grow, with passenger traffic rising 36.4% year-on-year in H1′ 2025, reflecting its expanding role as Dubai’s secondary aviation hub.

At the same time, Phase 1 of DWC’s expansion is underway, including a new terminal, concourses, and a second runway, and is expected to increase the airport’s capacity to 150 million passengers annually upon full completion.

The combined momentum at DXB and DWC highlighted Dubai’s integrated approach to aviation, where record passenger volumes and large-scale infrastructure investments reinforced the Emirate’s position as a global trade and tourism gateway.

Passenger Traffic – Dubai International Airport (DXB)

Source: Dubai Airports, Cavendish Maxwell

As Dubai continues to set new benchmarks in safety, inclusivity, and connectivity, the hospitality sector is not just keeping pace – it is leading the way. The city’s ability to attract diverse visitor profiles, while consistently elevating guest experiences, underpins its resilience and growth.

Looking ahead, Dubai’s focus on premium offerings and strategic innovation will ensure it remains a global destination of choice for both leisure and business travellers. - Vidhi Shah, Director, Head of Commercial Valuation

International Visitors

Dubai welcomed 9.9 million international visitors in the first half of 2025, a 6.1% increase compared to the same period last year.

The city’s reputation as a safe, well-connected destination offering a blend of traditional and modern experiences has reinforced its position as a preferred global hub. This growth was supported by Government-led initiatives, including international partnerships, major events, global activation programmes, and the launch of new attractions that appeal to both first-time and returning visitors.

Read the full report here

Cavendish Maxwell was established in the Middle East in 2008 and is the largest firm of independent property consultants. We are a member of the Royal Institution of Chartered Surveyors (RICS) and specialise in a wide variety of real estate sectors. We have over 120 people working in eight offices in the GCC and provide clients with a comprehensive range of services. Our international experience and local market knowledge enable us to tailor real estate solutions for clients in a wide variety of industries across the region.

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