Dubai has strengthened its portfolio in the medium and small hotel market, positioning itself as a global destination catering to various visitor requirements, including those with medium incomes. The emirate has witnessed the opening of 112 medium and small hotel establishments with a total of 21,800 rooms, ranging from one to four stars, over the past four years, according to data released by the Department of Economy and Tourism.
The data shows that the market for small and medium hotels increased from 49,500 rooms in August 2020 to 71,300 rooms by the end of August this year. The number of medium and small hotel establishments rose from 350 in August 2020 to 462 establishments by the end of August this year, marking an addition of 112 new establishments.
As of the end of August last year, the number of hotel rooms in Dubai reached 148,500 rooms within 814 hotel establishments, compared to 142,200 rooms in 779 establishments at the end of August 2022. The average hotel occupancy rate across all operating facilities in Dubai was 76%, compared to 71% during the same period in 2022 and 73% for the same period in 2019.
Luxury five-star hotel rooms accounted for 35% of the total market share in Dubai’s hotel market, registering around 51,200 hotel rooms within 156 hotel establishments. They were followed by four-star hotel rooms with 28%, registering around 42,200 hotel rooms within 188 establishments. Three-star and one-star rated hotels accounted for about 20% of the total market share, with a capacity exceeding 29,000 hotel rooms within 274 hotel establishments.
As for hotel apartments, they recorded around 25,900 rooms within 196 hotel establishments, representing 17% of the hotel market.
The Department of Economy and Tourism in Dubai unveiled the latest statistics on the performance of the tourism sector and the number of international visitors during the first eight months of this year. The statistics showed Dubai’s success in attracting 11.1 million international visitors between January and August 2023, compared to 9.12 million international visitors received by the city during the same period last year, reflecting an increase of over 21.7%. This is also compared to 10.85 million visitors during the same period in 2019, before the COVID-19 pandemic, with a growth rate of about 2.3%.