UAE Hospitality Forecast

In a market where headlines are dominated by residential transactional volume and the latest off-plan launches. The UAE hospitality market continues to demonstrate solid foundations. With demand outpacing supply and a record number of occupied room nights forecast for 2025, it’s proving to be one of the most stable segments of the economy.

Abu Dhabi continues to demonstrate the highest growth in top-line performance. Limited additions to inventory and a low Average Daily Rate (ADR) base has meant two of Abu Dhabi’s sub-markets are the UAE’s best performers in terms of revenue per available room growth:

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UAE Demand (Room Nights)

4.5%

UAE Demand (Room Nights)

62.6m

UAE Supply (Room Nights)

0.7%

UAE Supply (Room Nights)

78m

Downtown & Corniche

30.3%

Exhibition Centre & Suburbs

24.4%

UAE Hospitality Demand

UAE Hospitality Supply

UAE Hospitality Values

Methodology

Capital value assessments are conducted across the segments using municipality statistics, STR, HOTSTATS and Real Estate X - Discovery data. This work is based on secondary market research and analysis of financial information available to Real Estate X at the time of the assessment. Real Estate X uses actual operating data to determine a reasonable level of EBITDA, less FF&E with the assessment date being 1 Oct 2025. Coupled with transactional evidence and forward-looking assumptions that reflect expectations of the market at the date of assessment, we assess any changes in perceived value in relation to the previous assessment date, 12 months prior.

Real Estate X gathers its data from sources it considers reliable; however, it does not guarantee the accuracy or completeness of the information provided. Any forward-looking information and statements contained herein are subject to various risks and uncertainties, many of which are difficult to predict and could cause actual performance to differ, other firms may also have differing opinions, projections or analysis. The information and analysis herein do not constitute advice of any kind and should not be used for investment purposes, Real Estate X, nor any of its subsidiaries or their respective officers, directors, shareholders, employees or agents accept any responsibility or liability with respect to the use of or reliance on any information or analysis contained in this document.

This work is copyright Real Estate X and may not be published, transmitted, broadcast, copied, reproduced or reprinted in whole or in part without the explicit written permission of Real Estate X and Real Estate X has no obligation to update or alter its opinions should market dynamics later change.

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