- Abu Dhabi recorded an occupancy rate of 65.2% in June, well above the other markets in the UAE
- UAE-wide RevPAR declined 31.8% year-to-date through June, with prolonged regional tensions compounding traditional summer seasonality Operators roll out value-driven packages targeting domestic and GCC resident demand
Dubai, UAE; August 2026 – Strong long-term tourism fundamentals, continued destination investment and a diversified demand base across international, regional and domestic segments position the UAE’s hospitality sector for sustained growth and value creation in the years ahead, according to JLL’s UAE Hotels Market Dynamics Q2 2026 report.
While traditional summer seasonality and sustained regional tensions impacted international arrivals, proactive government intervention has successfully cushioned the industry from immediate market headwinds. Dubai’s AED 2.5 billion relief package, launched in two phases, covered exemptions on the Tourism Dirham, hotel and restaurant fees, significantly easing cost pressures across hospitality and allied tourism businesses, and preserving liquidity ahead of the market’s recovery.
Current market dynamics highlight remarkable industry agility. To capture domestic and wider GCC demand and drive revenue, operators across all segments rolled out discounted room rates, staycation bundles, and family- and leisure-oriented packages in Q2 2026. Several properties also introduced value-added incentives such as dining credits, spa access, and extended-stay offers to boost occupancy.
Temporary hotel closures for renovation purposes remained a core cost management strategy, with some properties bringing forward renovation timelines to capitalise on lower tourism levels and deliver enhanced service standards on reopening.
In Q2 2026, Abu Dhabi’s hotel stock remained steady at 33,650 keys with approximately 120 keys expected for delivery by year-end, while Dubai maintained 159,300 keys with an anticipated 4,900 keys for completion. Operators have taken a more measured approach to development activity, adjusting project timelines and focusing on upgrading existing stock and awaiting demand restoration before launching new properties. This reflects near-term caution around execution rather than weakening investor confidence in the UAE’s long-term tourism fundamentals. As conditions stabilise, the sector is well-positioned for a steady return to pre-disruption performance levels.
About JLL:
JLL (NYSE: JLL) is a leading global commercial real estate services and investment management company with annual revenue of $26.1 billion, operations in over 80 countries and a global workforce of more than 113,000 as of December 31, 2025. For over 200 years, clients have trusted JLL, a Fortune 500® company, to help them confidently buy, build, occupy, manage and invest across a variety of industries and property types, including office, industrial, hotel, multi-family, retail and data centre properties. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY. Powered by rich global datasets and leading technology capabilities, we provide coordinated, end-to-end delivery of real estate services for a broad range of global clients who represent a wide variety of industries. Through LaSalle Investment Management, we invest for clients on a global basis in both private assets and publicly traded real estate securities.
About JLL MEA:
Across the Middle East and Africa MEA JLL is a leading player in the real estate and hospitality services markets. The firm has worked in 35 countries across the region and employs over 1800 internationally qualified professionals across its offices in Dubai, Abu Dhabi, Riyadh, Jeddah, Al Khobar, Cairo, Casablanca, Cape Town, Johannesburg and Nairobi. For further information, visit jll.com
