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UAE hotels step up refurbishment as luxury hospitality demand grows
From iconic landmarks to luxury resorts, UAE hotels are embracing renovation to deliver world-class experiences, improve operational performance, and future-proof their assets
- PUBLISHED: Fri 7 Aug 2026, 12:22 PM
The UAE’s hospitality sector is raising the bar through extensive renovation and refurbishment projects across leading hotels, including Burj Al Arab, JW Marriott Marquis Dubai, Park Hyatt Dubai, and St. Regis The Palm, among others.
Leading hospitaly executives said these upgrades encompass guest rooms, public spaces, restaurants, wellness facilities, and digital technologies, ensuring that hotels remain competitive in an increasingly sophisticated market.
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“By investing in modernization, operators are leaving no stone unturned to meet evolving traveler expectations and maintain the UAE’s position as a premier luxury destination,” according to industry experts.
They are of the view that business case for refurbishment is supported by strong market fundamentals. The UAE had approximately 213,928 hotel rooms in operation in 2025, with supply forecast to reach 235,674 rooms across 1,184 hotels by 2030. Furthermore, 43% of upcoming hotel inventory falls within the luxury segment, highlighting the continued focus on high-end hospitality.
Dubai remains the lion’s share of the market, accounting for 55.9% of the upcoming hotel room supply, while the UAE recorded an impressive 78.5% average occupancy rate and 11.9% year-on-year growth in both Average Daily Rate (ADR) and Revenue per Available Room (RevPAR) during 2025, according to the Knight Frank’s data released recently.
Guest satisfaction metrics further reinforce the value of refurbishment investments. About 94% of visitors were satisfied with their hotel stay in Dubai, up from 92% in 2022, while 80% indicated they would likely book a hotel stay in the city again, according to KPMG’s 2025 Hospitality report.
The KPMG’s latest data also found that 88% of guests consider modern technology an important factor in their hotel experience, emphasizing the growing importance of smart-room features, seamless digital services, and upgraded facilities.
As competition intensifies and new luxury properties enter the market, hotel owners recognise that a stitch in time saves nine. Renovation and refurbishment are no longer optional but the name of the game, helping properties enhance guest satisfaction, strengthen brand positioning, and improve long-term profitability. By staying ahead of the curve, the UAE’s leading hotels continue to attract discerning international travelers and set new benchmarks for hospitality excellence.
Renovation, refurbishment strategies need of the hour
Lukas Tremmel, General Manager at Al Habtoor Polo Resort, said renovation, refurbishment and upgradation of hotels indicate that the hospitality industry has moved beyond simply offering a bed and a breakfast.
“Today's guests expect experiences, and their expectations evolve faster than ever. Accelerated renovation strategies show that brands are no longer reacting to outdated facilities but proactively shaping environments that feel fresh, relevant, and inspiring. It tells me the industry is shifting from "maintenance mode" to "experience-led design." At Al Habtoor Polo Resort, we constantly renovate and refurbish, partially refurbishing to avoid major revenue displacements, to stay up to date with our product,” Tremmel told BTR.
Samer Saleh, General Manager at Centara Mirage Beach Resort Dubai, said the acceleration of renovation and refurbishment reflects a clear shift in the hospitality industry — hotels can no longer rely only on location, brand name, or historical demand. Guest expectations are moving faster, competition is becoming sharper, and properties must continuously protect their relevance.
“Renovation today is not only about improving design. It is about protecting asset value, improving operational efficiency, increasing revenue potential, and keeping the guest experience aligned with current market expectations. For family resorts in particular, refurbishment must support comfort, durability, safety, entertainment, and stronger value perception.
He said the industry is moving toward more frequent, more strategic, and more experience-led upgrades rather than waiting for a property to become outdated.
Timing is Right
Tremmel is of the view that this is the right time for hospitality brands to integrate advanced consumer technologies and innovations to elevate guest experience as most of the owners increasingly viewing refurbishment as a strategic and long-term investment rather than a routine upkeep.
“Absolutely, but with a caveat. Technology should never replace human warmth, it should enhance it. Now is the right moment to integrate smart technologies like mobile check-in, AI-driven guest preferences, or room automation, provided they solve real guest pain points (e.g., long wait times, temperature control, and personalised service, among others). However, the investment must be guest-centric, not just tech for the sake of tech. When done right, technology becomes invisible but unforgettable”
Saleh echoed similar views and said hotel owners consider refurbishment and renovation of their properties as a strategic and long-term investment rather than a routine maintenance.
“Yes, but technology must be introduced with purpose, not just for image. The right technology should make the guest journey easier, faster, more personalised, and more efficient for the hotel team.”
He said owners are now looking at refurbishment through a return-on-investment lens. “This means upgrades should either improve guest satisfaction, reduce operational pressure, increase spending, or allow the hotel to command a stronger rate. Technology can support this through smoother check-in, digital communication, smart room features, better energy management, personalized offers, and stronger data-driven guest engagement.
“However, technology should never replace hospitality. It should remove friction so the team can focus more on genuine service and guest care.”
Future-proofing initiatives
Saleh said futureproofing is critical because hospitality competition is no longer only about today’s guest; it is about anticipating what tomorrow’s guest will expect.
“Luxury and premium properties must continuously evolve in design, comfort, service delivery, sustainability, wellness, digital convenience, and lifestyle experiences. In Dubai especially, the pace of new supply and new concepts is very strong, so even well-established properties must keep investing to remain competitive.”
For resorts, he said futureproofing also means creating spaces that are flexible, durable, family-friendly, commercially productive, and able to support different guest segments throughout the year. “The properties that invest early will protect their rate positioning and brand strength. The ones that delay will end up spending more later just to catch up.”
Tremmel opine that hospitality brands have no other options but to prioritising future-proofing initiatives to main competitive advantage in today's rapidly evolving luxury hospitality landscape.
“It is no longer a luxury, it is a necessity. Futureproofing is what separates timeless icons from fading memories. In a city like Dubai, where the new is always around the corner, even the most prestigious properties must evolve to stay relevant.
It is pertinent to note that iconic properties such as Burj Al Arab, Armani Hotel Dubai, and Park Hyatt Dubai are undergoing through renovation and refurbishment to enhance guests’ experience.
“Futureproofing means anticipating what guests will want tomorrow, not just fixing what they complain about today. These iconic hotels are leading by example, showing that legacy and innovation can, and must coexist,” he said.
Key Factors
Tremmel described three key factors that are driving the surge in renovation and repositioning strategies among leading hospitality brands. These key factors are guest expectations, competitive pressure, and the uncertain situation in the country.
“Guests today want personalisation, seamless technology, wellness integration, and authentic design. They also value sustainability and mental comfort, quieter spaces, better air quality, natural light.
“That said, I must acknowledge that DTCM is doing a fantastic job supporting the hospitality industry. Their efforts have been instrumental in helping hotels navigate challenges and continue investing in their product,” he said
Tremmel further said owners today are not only investing in refurbishment but also taking revenue displacement into account. With strategic developments and lower occupancy periods, driven by various market factors, revenue displacement has become a bit more affordable for strategic refurbishment.
“At Al Habtoor Polo Resort, we constantly renovate and refurbish, often opting for partial refurbishments to avoid major revenue displacements while keeping our product fresh and competitive.
“Renovations are no longer just about looking new; they are about feeling right. Evolving guest expectations have pushed hotels to reposition from places to sleep to places to live, work, and connect,” he said.
Saleh said the main drivers are stronger competition, changing guest behaviour, higher expectations for comfort and design, the need for better operational efficiency, and the pressure to maintain rate integrity.
“Guests today are more informed. They compare hotels instantly through photos, reviews, social media, and online travel platforms. They expect modern rooms, strong F&B concepts, seamless service, attractive public spaces, wellness options, family experiences, and value for money. If the product does not match the price, the guest will say it immediately online.
“This is why refurbishment is becoming more strategic. It is not only about fixing old areas. It is about repositioning the property, improving the guest journey, creating new revenue opportunities, and ensuring the hotel remains competitive in its market.”
Future Trends
Saleh expects renovation cycles will become shorter and more frequent as guest expectations and technology continue to evolve in the coming years.
”Yes, renovation cycles will become shorter, but they will also become more selective. Instead of waiting for a full property renovation every decade, hotels will need to manage continuous upgrades across rooms, public areas, F&B outlets, wellness spaces, kids’ facilities, technology, and back-of-house systems.”
The smart approach is to plan refurbishment in phases, linked to guest feedback, market trends, asset condition, and revenue opportunity. This allows the hotel to stay fresh without creating major disruption.
“In today’s market, standing still is a risk. A hotel that does not evolve will slowly lose rate strength, guest satisfaction, and competitive positioning, according to Saleh.
Tremmel also expressed the same opinion and said hospitality brands will have to meet guest expectations to remain an active player in the today’s competitive market.
