Over 23,000 new hotel rooms are planned across the UAE, with Dubai contributing more than half of this new inventory, as per Knight Frank’s recent research.
The current hotel supply is 213,928 rooms, projected to grow to 235,674 by 2030. Dubai is developing 12,861 new rooms, boosting its total from 152,478 to 165,339 by 2030.
As a premier luxury destination, most new rooms are high-end. Of the existing 213,928 rooms, 26% are upscale, 22% luxury, and 21% upper upscale. By the end of 2025, the UAE’s room count will reach 217,853, marking a 3% increase from 2024, and expected to rise to 235,674 rooms across 1,184 hotels by 2030.
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In other emirates, Abu Dhabi has 37,016 rooms, Sharjah 14,478, and Ras Al Khaimah 11,902. By August 2025, Dubai will account for 55.9% of the UAE’s upcoming hotel supply.
Job Creation Potential
This growth is forecasted to create thousands of jobs across the UAE hospitality sector, especially in Dubai. Each luxury room generates 1.5 jobs, including roles in housekeeping, F&B, concierge, and spa services, while midscale rooms create 1 job per room, and budget rooms 0.5 jobs.
Overall, the UAE’s hospitality sector is expected to create between 11,500 and 34,500 new jobs in the coming years.
“The UAE hospitality sector’s robust growth is evident, with record tourist influxes in cities like Dubai underscoring its rise as a top global destination. The government predicts 22 million tourists by 2025,” commented Faisal Durrani, partner and head of research for Mena at Knight Frank.
Shifting Focus: From Development to Acquisitions
Analysts observe a shift among investors from development-heavy growth to strategic acquisitions as the UAE hospitality sector matures.
“UAE hotel transactions are evolving, especially in Dubai, where focus is moving from development-led growth to strategic acquisitions and asset repositioning. This marks a more sophisticated investment environment influenced by rapid growth and increased institutional capital,” added Durrani.
Oussama El Kadiri, partner and head of hospitality, tourism, and leisure advisory for Mena at Knight Frank, pointed out Abu Dhabi and Ras Al Khaimah as emerging investment hubs, offering leisure-focused opportunities and alternative assets.
“As the UAE shifts from a development-heavy phase to balanced, investment-led growth, hotel transactions are set to remain robust. The market’s maturity, depth, and resilience make it a prime destination for hospitality investment in the region,” he stated.
El Kadiri further noted that the maturing market attracts a diverse range of investors—from regional family offices to global funds—aiming for long-term value through operational improvements, brand partnerships, and mixed-use developments.
