UAE Hospitality Market Dynamics, Q1 2025
Summary and analysis of Abu Dhabi's current hospitality real estate market conditions.
- Faraz Ahmed
- Muhammad Aijaz
- Taimur Khan
Dubai's tourism sector demonstrates growth and resilience, with a 2.5% increase in visitation. Data showed a balanced mix of source markets, reinforcing its position as a diverse and adaptable global tourism destination. Top three source markets accounted for around 53% of total overnight visitation.
Abu Dhabi ad Dubai, demonstrated robust growth in Q1 2025, defying traditional seasonal patterns. Both emirates recorded significant improvements in key performance indicators (ADR, RevPAR, and Occupancy), with Abu Dhabi in particular showing exceptional gains.
Operators recognise the need to differentiate offerings in order to capture high-end luxury demand. This includes renovations of existing assets, and enhanced lifestyle offerings, particularly in the F&B sector.