28 August 2026 22:35 |
Last updated: 28 August 22:44 2026
Dubai hotels are on the path to recovery in the latter half of 2026, with current occupancy rates projected to rise significantly.
Summary
Dubai hotels are recovering in the second half of 2026, with occupancy rates currently between 65-75%, expected to reach 85% in the final quarter, bolstered by increased air travel, events, and a 20% rise in bookings.
Dubai’s hotel sector is gearing up for a significant rebound in the last quarter of 2026, as occupancy and booking figures show a steady improvement. This resurgence is supported by a rise in international demand, enhanced flight connectivity, promotional offers, and a robust calendar of events and conferences.
Hotel managers report a noticeable uptick in market indicators, citing current occupancy rates between 65% and 75%, with projections suggesting a spike to approximately 85% during the final quarter. Furthermore, performance metrics indicate an improvement of about 20% compared to the second quarter. Bookings exhibit a potential growth of 20% in the latter half of the year compared to the same period in 2025, driven by increased interest from markets in Russia, Europe, China, and within the region, including local demand from the UAE and Gulf Cooperation Council countries, alongside a resurgence of interest from South Korea and Japan.
A recent report by CV Maxwel highlights a clear recovery trend in Dubai’s hospitality sector for the second half of 2026, anticipating further momentum beginning in the fourth quarter. This recovery is expected to be fueled by improved air links, a resurgence in international tourism, and the arrival of the winter season, with forecasts indicating an average hotel occupancy of around 66.2% for the year.
85% Projected Occupancy in the Final Quarter
Waleed Al-Owa, General Manager of Tamani Marina Hotel, noted significant improvement in performance over the past two months, expecting further gains in the fourth quarter compared to the earlier months of the year. This increase is largely driven by a rise in holiday bookings, particularly from Gulf and local markets in the UAE.
He reported current occupancy rates at the hotel, fluctuating between 65% and 75%, marking some of the highest levels recorded. Al-Owa anticipates an increase to around 85% during the final quarter, attributed to the winter season, various events, and festive periods. The hotel has already begun to see a strong return in reservations for October, while July, August, and September bookings remain on par with typical figures for this time of year. Current performance shows around a 20% improvement compared to the second quarter of 2026, although it still lags behind last year’s figures.
Al-Owa also noted that the UAE leads in terms of guest inflow, with Oman showing healthy demand. Furthermore, demand from Asian markets, particularly South Korea and Japan, has shown marked improvement. The hotel expects performance improvements in the fourth quarter to range between 15% and 20% compared to the third quarter of 2026, particularly with increased demand anticipated from events and exhibitions.
Early Future Bookings
Mamdouh Ali, General Manager of Rose Rayhaan Roshana, emphasised the ongoing positive performance expected in the fourth quarter, particularly with an increase in conferences and events scheduled for September and October. Current booking trends support expectations of a 20% performance increase in the latter half of the year compared to the same period in 2025. He highlighted the crucial role of tourism initiatives, incentives, and hotel offers in boosting bookings, as well as the variety of events and experiences Dubai provides, encouraging visitors to plan their trips and book in advance.
Ali stated, “Based on current booking indicators, we predict a growth of approximately 20% during the second half of the year compared to the same period in 2025. Our future bookings, particularly for September and October, clearly reflect improving demand, driven by heightened interest from international markets and the ongoing momentum in the conference and events sector. Russia, Europe, and China currently lead as the top markets sending tourists, alongside sustained demand from regional markets. This diversity in market sources showcases Dubai’s strong appeal as a global tourist destination.”