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Hotel market update with a focus on refurbishment

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Contacts & Related Research

Market Highlights

  • The tourism sector in the UAE has witnessed a resurgence over the last 12 months, as global travel rebounded following the Covid-19 pandemic.
  • Dubai welcomed more than 14.36 mn visitors in 2022, jumping 97% y-o-y as it resumed tourism activities and benefitted from the success of events such as Expo 2020.
  • Activity levels in 2023 are expected to increase further with more than 4.67 mn visitors already recorded for Q1 2023 up 17.6% from the 3.97 mn visitors in Q1 2022.
  • The local hospitality sector has been busy catering to this influx of tourists with hotel occupancy levels averaging around 83.1% during the first quarter of the year.
  • The Dubai market has seen a 26% increase in the total number of available rooms (including hotel apartments) since Q1 2019.

An active tourism market is prompting the launch of newer hospitality developments and schemes across the country. With new supply to be handed over throughout 2023 and beyond, it is important for landlords and operators to evaluate their existing projects and plans and make necessary refurbishments to ensure their development is relevant to current demand trends.

Read the full report HERE which includes a hotel refurbishment cost benchmark snapshot.