UAE HOSPITALITY MARKET REVIEW 2024

An annual data-led review of the hospitality market across the UAE, with a focus on Dubai

UAE's current and future hotel room supply UAE's top 6 hotel operators UAE's hospitality market performance -Jan-Jul 2024
Number of hotels Number of hotel rooms Number of rooms 800 100%

1,200 250,000 90% 90%

Millennium Hotels 700
8,031 300
& Resorts (MHR)
81%
80%
76% 77% 77%
76%
1,000 600 74% 75%

200,000 Rotana Hotel Management 72% 72%

8,810 217 70% 70% 69% 70%
Corporation PJSC
64%
500
800 60%

150,000 IHG Hotels & Resorts 9,276 2,507

400 50%

600
40%
300
Hilton Worldwide 11,591 1,853
100,000
30%
400 200
Marriott International 22,402 2,426 20%

50,000 100
200 10%

Accor 23,965 3,001

0 0%
Jan-Jul Jan-Jul Jan-Jul Jan-Jul Jan-Jul Jan-Jul Jan-Jul Jan-Jul Jan-Jul Jan-Jul Jan-Jul Jan-Jul Jan-Jul Jan-Jul
0 0 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024

2010 2012 2014 2016 2018 2020 2022 2024F 2026F 2028F 2030F 0 5,000 10,000 15,000 20,000 25,000 30,000
UAE Abu Dhabi Dubai Ras Sharjah Fujairah Ajman
Al-Khaimah
Number of hotels Number of rooms Source: Knight Frank, STR Global Existing supply Upcoming supply Source: Knight Frank, STR Global ADR RevPar Occupancy Source: Knight Frank, STR Global

UAE's supply breakdown by operator's classification UAE's current and upcoming supply by operator classification UAE's hotel keys distribution
Number of rooms
Existing supply Upcoming Supply Total Supply by 2030
180,000
3%

Under construction 160,000 17,810

5% 4%
& final planning 82% 10% 8% 12%
6%
11% 140,000
25% 10% 27%
120,000

14%
211,580 26,832 39%
14% 238,412 100,000
Existing rooms rooms rooms 80,000
67% 24% 9% 21% 151,417

23% 60,000
23%
21% 1,603
21%
21% 40,000
0% 20% 40% 60% 80% 100% 20,000 37,148 7,465 1,078
4,809 2,474 3,899
8,764 592
0
Luxury Upper Upscale Upscale Upper Midscale Midscale Economy Dubai Abu Dhabi Ras Al- Fujairah Ajman Umm Al Sharjah
International brand Local brand Unbranded
Khaimah Quwaim
Source: Knight Frank, STR Global Source: Knight Frank, STR Global Existing supply Upcoming supply Source: Knight Frank, STR Global

218,669 82% 42%

Rooms expected in
Of the upcoming Of upcoming supply
64% 211,580 76%
the UAE by end of Of the UAE's Rooms currently Average occupancy
supply is comprised is comprised of
2024 - a 4.4% upcoming hospitality trading in the UAE as across the UAE
of internationally luxury & upper
increase from 2023 supply is in Dubai of July 2024 Jan-Jul 2024
branded hotels upscale hotels

Source: Knight Frank, STR Global, Dubai Department of Economy & Tourism
Contacts
Daniel Pugh Oussama El Kadiri Turab Saleem Stephen Flanagan Shehzad Jamal Harmen de Jong Faisal Durrani Aliaa M Elesaaki @MENAKnightFrank @KnightFrankMENA
Partner - Head of Hospitality Valuation Partner - Head of Hospitality, Tourism Partner - Hospitality, Tourism & Partner - Head of Valuation & Advisory, MENA Partner - Strategy & Consultancy, MEA Partner - Head of Strategy & Partner - Head of Research, MENA Research Manager
& Advisory, MENA & Leisure Advisory, MENA Leisure Advisory, MEA Consultancy, MENA @KnightFrankMENA @KnightFrankUAE
[email protected] [email protected] [email protected] [email protected]
[email protected] [email protected] [email protected] [email protected] @KnightFrankMENA
 DUBAI’S HOSPITALITY MARKET

Dubai's source of visitors by region - Jan-Jul 2024 Dubai's top 6 hotel operators Dubai’s hospitality market performance - 2012-Jul 2024
Number of rooms AED Occupancy (%)
25,000 1,200 85%

Western Europe Eastern Europe 20,079

Americas 20% 14% 80%
80%
20,000 1,000 79%
7% 17,321 77%
77% 77% 77% 77% 77%
2,700
75% 75%
704 906
887 75%
73%
15,000 800 850

805

MENA
722 70%
697 711 691

12% 9,605 9,580 658

674
653
679

10,000 600 619 628

South East Asia 594

2,230 2,160 550 551 569
65%
10% 16,617 532
66%
536
503
South Asia 5,393 473 462

17% 4,076 400

5,000 17,379
411

7,420 469
391
60%
7,375
5,393
3,607
Africa Australasia
200
5% 2%
225
0 55%

Accor Marriott Hilton IHG Hotels Millennium Jumeirah

International Worldwide & Resorts Hotels & Resorts International
0 50%
Existing supply Upcoming supply Grand total 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Source: Knight Frank, Dubai Department of Economy & Tourism *Includes all projects’ phases Source: Knight Frank, STR Global ADR RevPar Occupancy Source: Knight Frank, STR Global

Dubai's occupancy rates by class - Jan-Jul 2024 Dubai's current and upcoming supply by operator classification Dubai's International tourism growth
Visitors (thousands) % variance
82% Existing supply Upcoming Supply Total Supply by 2030
20,000 120%
81% 1%
97%
81% 18,000 100%
80% 8% 9% 8%
16,000 80%
79% 9% 9%

79% 35%
9% 14,000 60%
78% 37%
78% 151,417 17,748 169,165 12,000 40%
77% rooms rooms 18%
rooms 32%
77%
19% 10,000 20% 20%
76% 21% 60%
8,000 5% 0%
75% 6,000 -20%
75%
29%
74% 28%
4,000 -40%
73% 2,000 -60%
-67%
72% 5 star 4 star 1-3 star Luxury aparthotels Aparthotels 0 -80%
5 star 4 star 1-3 star Luxury aparthotels Aparthotels 2018 2019 2020 2021 2022 2023 H1 2023 H1 2024
Source: Knight Frank, STR Global Source: Knight Frank, STR Global Total tourist arrivals % variance Source: Knight Frank, Dubai Department of Economy & Tourism

DXB
77% 10.62 million 60% World's busiest airport
151,417 Average occupancy Tourist arrivals in Dubai Of Dubai's upcoming 5% for international
Total number of supply is anticipated to be Increase in RevPar passengers in 2023
Jan-July 2024 in as of July 2024, up 8%
existing keys luxury and upper-upscale rates in 2024 hosting 89.2 million
Dubai on same period in 2023
hotel rooms passengers

Source: Knight Frank, STR Global, HOTSTATS Hospitality Intelligence, Dubai Department of Economy & Tourism
Contacts
Daniel Pugh Oussama El Kadiri Turab Saleem Stephen Flanagan Shehzad Jamal Harmen de Jong Faisal Durrani Aliaa M Elesaaki @MENAKnightFrank @KnightFrankMENA
Partner - Head of Hospitality Valuation Partner - Head of Hospitality, Tourism Partner - Hospitality, Tourism & Partner - Head of Valuation & Advisory, MENA Partner - Strategy & Consultancy, MEA Partner - Head of Strategy & Partner - Head of Research, MENA Research Manager
& Advisory, MENA & Leisure Advisory, MENA Leisure Advisory, MEA Consultancy, MENA @KnightFrankMENA @KnightFrankUAE
[email protected] [email protected] [email protected] [email protected]
[email protected] [email protected] [email protected] [email protected] @KnightFrankMENA