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Dubai hotel occupancy to recover in 3-6 months, say experts
Leisure demand is usually the quickest to rebound, according to Hassan Malik, managing partner and sports and tourism leader at Deloitte Middle East
- PUBLISHED: Tue 30 Jun 2026, 9:20 AM UPDATED: Tue 30 Jun 2026, 1:27 PM
Although the region has experienced hiccups after the interim ceasefire signed in mid-June, Dubai’s hospitality sector is expected to recover in the next few months as flights return to almost normal capacity, tourism executives said.
“Assuming a full end to the situation, I would expect Dubai hotel occupancy to recover within 3-6 months, which is based on a normalization of flight schedules into the region,” Hassan Malik, a managing partner and sports and tourism leader at Deloitte Middle East, said.
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Leisure demand is usually the quickest within the industry to rebound, Malik said, adding that he expects the uptake to be steady and for recovery to be well under-way.
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“Given the current off-peak summer season, I would expect the uptake to be steady and recovery to be well under-way as the peak season is back,” he told Khaleej Times.
Measuring average daily rates
With booking volumes, it is still too early to assess changes as real time data is not readily available. However, the tourism leader said he expects sentiment to be uplifted. “UAE carriers are already offering free travel insurance for visitors to the country, and I suspect the latest news will only bolster booking volumes moving forward,” he commented.
Malik specified that it is not just about volume of bookings, but also about how Average Daily Rates (ADRs) may bounce back and over what period, which is expected to follow a similar pattern. ADRs are one of the most important performance indicators, providing a clear picture of the average income generated from occupied rooms over a specific period, according to Universidad Europea.
Positive outlook in the second half of 2026
While the Deloitte partner noted that some leisure travelers may still be cautious, Tim Cordon, Radisson Hotel Group’s Chief Operating Officer, MEA & SEAP, said he expects confidence to return gradually. “We remain positive about Dubai’s tourism outlook over the next six to twelve months,” he said. “The city has built one of the most resilient tourism ecosystems globally, with a strong mix of leisure, corporate, events, and family travel.”
Despite that, the rest of the year will depend on how stable the ceasefire is, which will in turn mark how the hotel industry reacts. “For the second half of the year, expectations are likely to be cautiously optimistic rather than dramatically revised overnight,” he said.
Hind Aldah is a business reporter based in Sharjah. In her spare time, you will find her playing classical guitar, painting amateur oil paintings, or crocheting the same old scarf that leads nowhere.