Dubai will add 9,300 hotel rooms by 2028 and create 13,900 new job opportunities.
**January 21, 2026 - SHARJAH**
According to Cavendish Maxwell data, the emirate of Dubai is set to add 4,600 new hotel rooms in 2026, compared to 3,400 rooms last year, with plans for 21 new hotels to open this year. Additionally, the data indicates that Dubai will incorporate 2,900 new hotel rooms into its capacity in 2027 and 1,800 in 2028.
**Hotel Investments and Employment Expectations**
Industry executives report that each hotel room generates an average of 1.0 to 1.5 direct jobs. Luxury hotels typically require 1.5 or more employees per room, while budget hotels range from 0.5 to 1 staff member per room. A significant portion of the hotels under construction in Dubai are in the luxury segment. Consequently, industry representatives anticipate that the planned 9,300 new hotel rooms will create an average of 1.3 to 1.5 jobs per room. This ratio translates to approximately **12,000 to 13,900 new job opportunities** in the emirate's hospitality sector.
### Growth Targets and 2025 Data
Dubai aims to become one of the top three destinations in the world for both business and leisure travel by 2033 under the D33 Economic Agenda. To increase tourist numbers in 2026, the emirate will undertake the following steps:
- Comprehensive marketing campaigns
- Strengthened airline and hotel partnerships
- Cultural festivals, adventure tourism, and business conferences
- Exclusive luxury travel packages
**Capacity Distribution:**
According to Cavendish Maxwell data, by the end of 2025, the emirate's hotel capacity reached a total of 158,700 rooms across 770 establishments. Last year, 10 new hotels entered the market, representing a 1.3% increase compared to 2024.
- By the end of 2025, nearly 70% of the establishments were classified as first-class, upper segment, and luxury hotels. The remaining 30% consisted of mid-range and more affordable hotels.
- Approximately 90% of the hotels scheduled for delivery this year fall within the upper segment category.
### Changes in Tourist Behavior
Vidhi Shah, Director of Commercial Valuation at Cavendish Maxwell, emphasized that the emirate's tourism and hospitality sectors continue to perform strongly in 2025. Shah noted, *"The city's expanding events calendar, luxury hotel portfolio, adventure options, world-renowned shopping festivals, and high-quality dining culture have transformed travel habits. Tourists are now leaning towards high-impact and experiential travel rather than traditional trips."*
**Visitor Demographics:**
Dubai welcomed **19.6 million** visitors last year. The distribution of visitors by region was as follows:
- **Western Europe:** 21% (Largest source market)
- **GCC (Gulf Cooperation Council) Countries:** 15.3%
- **CIS (Commonwealth of Independent States) and Eastern Europe:** 14.8%
- **South Asia:** 14.7%
- **MENA (Middle East and North Africa):** 11.1%
- **North and Southeast Asia:** 9.5%
- **Americas:** 7.1%
- **Africa:** 4.6%
- **Oceania:** 2%
### Occupancy Rates and Prices (2025)
- **Occupancy:** The occupancy rate of hotels in Dubai reached an average of **81%**, reflecting a 3.8% increase.
- **Segment-Based Increase:** The largest increase was seen in upper segment hotels at 4.9%, followed by luxury segment hotels at 4.5%. The highest occupancy rate of **84.4%** was achieved by the "upper-midscale" segment.
- **Room Rates:** Average Daily Rates (ADR) rose by 8.7% compared to 2024, reaching **746 Dirhams (Dh)**. The strongest growth in prices (10.4%) was again recorded in the upper-midscale segment.
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