Hotels across the UAE are stepping up staycation deals, discounted room rates and value-added packages to attract domestic and GCC travellers, as operators look to support occupancy and position the hospitality sector for recovery, according to JLL.
The consultancy said hotels introduced family- and leisure-focused offers, dining credits, spa access and extended-stay packages during the second quarter as softer international arrivals weighed on demand.
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JLL said the measures form part of a broader push by operators to offset weaker overseas demand while preserving revenue during the traditionally slower summer period.
The UAE hospitality sector remains supported by diversified demand from international, regional and domestic travellers, continued destination investment and government measures aimed at easing pressure on operators.
Domestic demand cushions softer international arrivals
Abu Dhabi recorded the strongest occupancy among the UAE’s major hotel markets in June at 65.2 per cent, compared with 51.6 per cent in Dubai and 33.6 per cent in Ras Al Khaimah.
Revenue per available room, or RevPAR, in Abu Dhabi declined a comparatively moderate 12.1 per cent year-on-year, supported by steadier domestic and government-linked demand.
Across the UAE, RevPAR declined 31.8 per cent year-to-date through June, as regional tensions combined with the usual summer slowdown to affect international arrivals.
Average occupancy stood at 57.9 per cent in the first half, while the average daily room rate was Dh680.6.
JLL said the pace of recovery would remain closely linked to improving regional conditions, restoring air connectivity and rebuilding traveller confidence.
Dubai relief package eases pressure
Government support is also helping hospitality businesses manage the softer period.
Dubai’s combined Dh2.5 billion relief package, introduced in two phases, includes exemptions on the Tourism Dirham, hotel and restaurant fees, as well as holiday-home and event-related charges.
JLL said the measures had eased cost pressures and helped preserve liquidity ahead of a broader market recovery.
Some operators have also brought forward hotel renovations during the quieter period, using temporary closures to upgrade properties and improve service standards before demand strengthens.
Hotel supply growth becomes more measured
No major hotel projects were completed in Dubai or Abu Dhabi during the second quarter as operators adjusted project timelines in response to current market conditions.
Dubai’s hotel stock remained at 159,300 keys, with around 4,900 rooms anticipated for completion, although JLL expects some projects to be deferred.
Abu Dhabi’s hotel inventory remained at 33,650 keys, with around 120 rooms expected by year-end.
JLL said the more measured pace of development reflected short-term caution around project execution rather than weaker confidence in the UAE’s long-term tourism prospects.
The consultancy expects continued destination investment, government support, resilient development pipelines and the eventual return of international demand to support a gradual recovery once conditions stabilise.
Source: Khaleej Times