How did Abu Dhabi's hotel sector perform in H1 2026?

Abu Dhabi's hotel industry achieved the highest occupancy rate in the UAE at **66.8%** for H1 2026, though its Average Daily Rate (ADR) declined 4.3% year-on-year to **Dh668.30** and Revenue per Available Room (RevPAR) dropped over 20% to **Dh446.60**.

What were Dubai's key hospitality metrics for H1 2026?

Dubai recorded an occupancy of **56.4%** in H1 2026, with ADR at **Dh701.10**, a 7% decrease. Its RevPAR fell significantly by over **35%** to **Dh395.70** for the first half of the year, largely due to weak long-haul international travel.

What factors influenced the UAE's hotel market in H1 2026?

The market was influenced by regional geopolitical tensions, which disrupted international travel, and the typical summer slowdown. Hoteliers countered this with a focus on domestic tourism through discounts and staycations, supported by government relief measures.

What government support was provided to the hospitality sector?

Dubai introduced a **Dh2.5 billion relief package** in May, which included waivers on the Tourism Dirham as well as hotel and restaurant fees. This support aimed to ease cost burdens and preserve cash flow for businesses in the sector.

What is the outlook for new hotel development in the UAE?

The second quarter of 2026 saw no major hotel projects completed in Abu Dhabi or Dubai as developers reassessed timelines. The Wynn resort in Ras Al Khaimah, for example, is now scheduled for a September 2027 opening, indicating a more cautious approach to new developments.

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Market Data·14 August 2026

UAE Hospitality Sees Mixed H1 2026: Abu Dhabi Leads Occupancy, Dubai RevPAR Declines Amid Regional Tensions

A JLL report for H1 2026 shows Abu Dhabi's hotels led UAE occupancy at 66.8%, while Dubai experienced a significant 35% decline in Revenue per Available Room (RevPAR) as regional geopolitical tensions impacted long-haul

The UAE's hospitality sector experienced varied performance in the first half of 2026, according to a recent JLL report, with Abu Dhabi demonstrating stronger resilience in occupancy rates compared to Dubai, which saw a notable decline in revenue.

H1 2026 Performance Snapshot

Abu Dhabi’s hotels recorded the highest occupancy in the UAE for January to June 2026, reaching 66.8%, with June itself at 65.2%. However, the capital's average daily rate (ADR) saw a 4.3% year-on-year drop to Dh668.30 over the half, and RevPAR fell by over 20% to Dh446.60.

Dubai, conversely, registered an occupancy of 56.4% for H1 2026, dropping to 51.6% in June. Its ADR was Dh701.10 for the half, down 7%, while RevPAR saw a substantial fall of over 35% to Dh395.70 for the half and nearly 39% in June, primarily due to weak long-haul travel. Ras Al Khaimah recorded 49.6% occupancy, with ADR up 5.2% to Dh705.60, though June saw declines across the board.

Across the UAE, occupancy for the first half stood at 58%, with ADR at Dh680.60, and RevPAR decreasing by roughly a third to Dh394.20.

Factors and Outlook

The JLL report attributed the mixed results to ongoing regional geopolitical tensions, which disrupted travel, alongside the usual summer slowdown. In response, hoteliers focused on the domestic market through discounts, packages, and staycations to offset the drop in international visitors. Government support, including Dubai’s Dh2.5 billion relief package launched in May, provided crucial assistance through waivers on Tourism Dirham, hotel, and restaurant fees.

Developers adopted a more cautious approach, with no major hotel projects completed in Abu Dhabi or Dubai during Q2, as timelines were reassessed. For instance, the Wynn resort in Ras Al Khaimah is now set for a September 2027 opening, partly due to construction delays tied to regional events. Abu Dhabi's hotel supply remained stable at 33,650 keys, with approximately 120 more expected by year-end, while Dubai’s inventory stood at about 159,300 keys, with 4,900 additional keys anticipated.

JLL anticipates that once conditions normalise and air links are fully restored, government fiscal support, robust project pipelines, and deferred international demand will enable the UAE's hospitality markets to steadily recover to pre-crisis levels.

Frequently asked

Questions, answered

How did Abu Dhabi's hotel sector perform in H1 2026?: Abu Dhabi's hotel industry achieved the highest occupancy rate in the UAE at **66.8%** for H1 2026, though its Average Daily Rate (ADR) declined 4.3% year-on-year to **Dh668.30** and Revenue per Available Room (RevPAR) dropped over 20% to **Dh446.60**.
What were Dubai's key hospitality metrics for H1 2026?: Dubai recorded an occupancy of **56.4%** in H1 2026, with ADR at **Dh701.10**, a 7% decrease. Its RevPAR fell significantly by over **35%** to **Dh395.70** for the first half of the year, largely due to weak long-haul international travel.
What factors influenced the UAE's hotel market in H1 2026?: The market was influenced by regional geopolitical tensions, which disrupted international travel, and the typical summer slowdown. Hoteliers countered this with a focus on domestic tourism through discounts and staycations, supported by government relief measures.
What government support was provided to the hospitality sector?: Dubai introduced a **Dh2.5 billion relief package** in May, which included waivers on the Tourism Dirham as well as hotel and restaurant fees. This support aimed to ease cost burdens and preserve cash flow for businesses in the sector.
What is the outlook for new hotel development in the UAE?: The second quarter of 2026 saw no major hotel projects completed in Abu Dhabi or Dubai as developers reassessed timelines. The Wynn resort in Ras Al Khaimah, for example, is now scheduled for a September 2027 opening, indicating a more cautious approach to new developments.

Reported by

Google News — Dubai Tourism & Hotels

View original coverage

This brief was summarised and rewritten by Gaia Living from public reporting. Figures and details reflect the original sources.

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