Dubai Hotels Occupancy Shows Recovery as Tourism Demand Returns
Dubai’s hotel sector is showing signs of recovery after a sharp decline during the regional conflict. Emaar expects its Dubai hotels to return closer to pre-war occupancy levels within the next 12 months.
Emaar founder and chairman Mohamed Alabbar said the company’s hotels are currently operating at around 60% occupancy. Before the conflict, occupancy stood at about 83%. During the most difficult period, it fell to around 20% to 25%.
The improvement has been supported by the gradual return of international flights and stronger travel demand. Gulf airlines have also been increasing capacity, while some European carriers are expected to resume services to the region.
Dubai’s wider tourism figures also point to a recovery. Hotel occupancy reached 66% in August 2026, compared with 36% in March. The emirate welcomed about 869,000 international overnight visitors in August, its strongest monthly figure since February.
However, the recovery remains uneven. Hotel operators have used discounts and other offers to attract visitors, while room rates remain under pressure.
Alabbar expects Dubai hotels to gradually return to normal conditions over the coming year. The recovery will depend on flight connectivity, regional stability and international travel demand.
