Hospitality Market Research and Feasibility Study in the UAE and KSA: 2025 Outlook and Investment Insights

Why Hospitality Market Research Matters in 2025-2026

The hospitality market across the UAE and Saudi Arabia has entered a new phase of growth — one defined by diversification, premium service models, and investment maturity. Dubai’s record-breaking visitor numbers and Abu Dhabi’s evolving business tourism landscape are reshaping regional benchmarks, while Riyadh and the broader Saudi market continue to open vast opportunities driven by Vision 2030.

At Accurate Middle East, our goal is to help investors, developers, and operators make data-based decisions through comprehensive market research and feasibility studies. Whether you are planning to launch a new hotel concept in Dubai, reposition a property in Abu Dhabi, or evaluate a hospitality investment in Riyadh, this article provides a snapshot of where the market stands today and why strategic research is the foundation for sustainable growth in 2025 and beyond.

Overview of the UAE Hospitality Market: size, growth, demand and trends 2025-2030

According to the latest Knight Frank UAE Hospitality Market Review 2025, the country’s hotel sector continues its strong post-pandemic recovery, now entering a mature and investor-led cycle.

• The UAE is expected to reach 217,853 hotel rooms by the end of 2025, representing a 3% year-on-year increase.
• As of August 2025, 212,291 rooms are already operational, and more than 55.9% of new hotel supply is concentrated in Dubai.
• National average occupancy stands at 78.5%, marking 4% annual growth, with an 11.9% rise in ADR (Average Daily Rate) year-on-year.
• Abu Dhabi remains the fastest-growing market, showing a 24% surge in RevPAR and a 20.2% increase in ADR.

The numbers and facts mentioned above confirm a clear trend: the UAE hospitality market is not only growing but shifting towards higher yield, premium-positioned assets that combine leisure, business, and lifestyle components. The report is available at the link for free download.

Dubai: The Regional Benchmark for Hospitality

Dubai remains the region’s unrivaled hospitality powerhouse. In the first seven months of 2025, the emirate welcomed 11.17 million international visitors, up 5.2% year-on-year, while the average occupancy rate reached 79.1% — one of the highest in the world.

The average length of stay increased to 3.7 nights, with a total of 25.5 million occupied room nights between January and July 2025. Dubai International Airport (DXB) maintained its position as the world’s busiest international airport for the 11th consecutive year, handling 92.3 million passengers in 2024.

The composition of visitors is increasingly diversified:

• Western Europe (21%)
• GCC countries (16%)
• Eastern Europe (15%)
• South Asia (15%)
• MENA (11%)

Luxury and upper-upscale hotels dominate the city’s supply, representing 47% of rooms, while lifestyle aparthotels and branded residences are the fastest-growing sub-segments.

This evolution underscores Dubai’s dual positioning — both as a global tourism capital and as an investment destination for institutional and private investors seeking stable returns from hospitality assets.

Hospitality Sector in Abu Dhabi and the Northern Emirates: Quiet Growth, Strong Fundamentals

While Dubai is showing the way, Abu Dhabi continues to build its business and cultural tourism base. The capital’s strategic focus on MICE (Meetings, Incentives, Conferences, Exhibitions), major cultural, entertainment, music, sporting events, and government-led initiatives has resulted in double-digit performance growth across all hotel classes.

Ras Al Khaimah is the UAE’s new wellness, leisure and adventure destination, driven by beachfront resorts, eco-tourism, and integrated wellness experiences. Sharjah and Fujairah are targeting niche segments such as family travel, heritage tourism, and affordable hospitality.

Together, these destinations create a diversified ecosystem that extends well beyond Dubai — a key reason why feasibility studies must consider the regional interplay of visitor flows, hotel categories, and operator presence.

Hotels and Hospitality in Saudi Arabia: A Market of Scale and Transformation

Across the border, the Kingdom of Saudi Arabia (KSA) continues its transformation under Vision 2030. The government aims to attract 150 million visitors annually by 2030, creating one of the largest hospitality markets in the world.

Riyadh, the political and business center, is seeing an influx of new luxury and lifestyle brands aligned with the city’s masterplan to become a regional hub for finance, culture, and events. NEOM, Red Sea, and Diriyah Gate projects are redefining what large-scale hospitality investment looks like in the Middle East.

For investors, the Saudi market offers scale, while the UAE provides stability and maturity — together forming a complementary investment corridor that Accurate Middle East helps clients navigate through precise research, competitive benchmarking, and location feasibility analysis.

Market Outlook and Investment Trends: From Development to Investment-Led Growth

The UAE’s hotel sector is transitioning from a phase dominated by development pipelines to one focused on strategic acquisitions and asset repositioning.

Recent transactions — such as Select Group’s acquisition of Radisson Blu Dubai Media City and Arzan Financial Group’s purchase of Fairmont The Palm — illustrate the growing appeal of income-generating properties over speculative builds.

Institutional investors and family offices are increasingly drawn to mixed-use developments, branded residences, and lifestyle-driven concepts that combine hospitality, retail, and residential functions.

Even with continuous supply growth, the UAE’s occupancy levels remain remarkably high. The combination of global connectivity, strong destination branding, and continuous event calendars — from COP28 and GITEX to major sports events — provides year-round demand.

For developers, this resilience highlights the need for accurate feasibility studies that consider seasonal patterns, average rate segmentation, competitive positioning, and revenue optimization models.

Why Feasibility Studies Are Now More Important Than Ever

The era of building hotels simply to fill supply gaps is over. The current market rewards strategic clarity, concept differentiation, and financial discipline.

At Accurate Middle East, our hospitality feasibility studies are designed to answer the questions investors and lenders now ask before approving new projects:

• What is the realistic occupancy and ADR potential based on micro-location and target audience?
• Which operator model (management, franchise, or owner-operated) ensures optimal ROI?
• How can F&B, wellness, and event spaces enhance asset value and length of stay?
• What is the break-even timeline considering capital expenditure and financing structure?
• What are the competitive risks and how can the concept stand out?

Each study we deliver integrates market research, financial modeling, and competitive benchmarking, supported by field data and proprietary demand forecasts across the UAE, Saudi Arabia, and the GCC.

Comparative Snapshot: Hospitality Market Indicators (2025)

Market	Average Occupancy (2025 YTD)	ADR Growth (YoY)	RevPAR Growth (YoY)	Key Investment Focus
Dubai	79.1%	+10.1%	+10.1%	Luxury, lifestyle hotels, branded residences
Abu Dhabi	78.5%	+20.2%	+24.0%	Business & cultural tourism, MICE
Ras Al Khaimah	71.6%	+7.2%	+8.7%	Leisure, eco-resorts, adventure tourism
Riyadh	Approx. 72%	+15.0%	+18.0%	Corporate hospitality, luxury & lifestyle

Opportunities for New Concepts

The ongoing diversification of regional tourism opens opportunities for mid-scale, serviced apartment, and wellness-driven concepts. Demand for long-stay accommodation and branded residential hybrids continues to rise, especially among digital nomads and business travelers.

Investors entering Dubai or Riyadh in 2025 should consider projects that integrate:

• Flexible hospitality models (mixed hotel and serviced apartment concepts) are in demand.
• Sustainability-certified buildings that align with national ESG mandates and social initiatives.
• Tech-enabled guest experience platforms for digital bookings and loyalty programs.
• Wellness, health, and lifestyle features that boost average length of stay.

Accurate Middle East Research and Consulting company frequently supports clients in adapting global hospitality models to GCC realities — balancing local regulations, operational costs, and regional demand behavior.

Case Example: From Market Research to Go-to-Market Strategy

A recent project, conducted by Accurate ME for a boutique hospitality operator shows how robust market intelligence translates into clear strategy. The engagement began with demand and price-point analysis across three UAE cities. After mapping competitor performance and traveler segmentation, we defined an optimized brand positioning and pricing strategy, helping the investor reduce payback time by more than 20%.

This process exemplifies the consulting value chain we bring — from market sizing and competitor mapping to financial feasibility and investor presentation decks. Every recommendation or piece of advice is backed by field data, advanced analytics, and local insight.

The Future of Hospitality in the GCC

The next five years will bring deeper integration between UAE and Saudi markets. Dubai’s experience in destination management and private investment will complement Riyadh’s scale and government-driven megaprojects.

Investors who act now — with data-validated feasibility studies — will position themselves to capture long-term returns from both leisure and business tourism streams. The focus is shifting from “build and sell” to “operate, differentiate, and sustain.”

At Accurate Middle East, we expect steady compound growth in ADR and occupancy through 2030, driven by lifestyle concepts, wellness tourism, and smart urban hospitality aligned with ESG and digital transformation trends.

Discuss Your Task with Us

The hospitality market in the UAE, KSA, and the wider GCC remains one of the most promising in the world — but success now depends on precision, not speculation. Each city, from Dubai to Riyadh, presents unique demand drivers, investor expectations, and operational challenges.

If you are considering entering or expanding in this market, start with research that gives you clarity — not assumptions.

Accurate Middle East provides tailored market research, feasibility studies, and financial modeling for hospitality investors, developers, and operators.

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Let’s turn your hospitality vision into a data-driven strategy — across the UAE, Saudi Arabia, and the GCC.