Emaar Properties expects Dubai hotel occupancy to return to pre-war levels

Mohamed Alabbar, founder and chairman of Emaar Properties, expects hotel occupancy rates in Dubai to return to pre-war levels within the next 12 months.

According to Alabbar, occupancy rates had previously stood at 83% before conflict began, subsequently dropping sharply to between 20% and 25% during the peak of regional unrest. Current occupancy has recovered to approximately 60%, a level Alabbar expressed satisfaction with as hotels resume normal operations. He noted that while the recent decline was a significant challenge following years of 9% to 10% annual growth, demand is gradually returning, supported by an increase in international flights.

The regional travel sector continues to face headwinds. Tourism Economics has projected a 14% decline in international travel to the Middle East, North Africa, and South Asia this year, with a decrease exceeding 30% in Gulf countries. A broader market recovery is anticipated to begin in 2027.