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Hotel demand soars in RAK, set to outpace supply by next year
Major tourism developments currently underway are expected to reshape the market over the coming years
- PUBLISHED: Tue 10 Feb 2026, 1:53 PM
Hospitality leaders in Ras Al Khaimah say the emirate’s hotel sector is entering a critical growth phase, with demand expected to outpace supply in the years leading up to 2027 and 2028 , creating what industry executives describe as a key “window of opportunity” for existing operators.
Speaking at the 8th edition of the RAK Investment Pulse, Tatiana Veller, Senior Vice President at Marjan Hospitality, and Evan Harrington, Cluster General Manager at Pullman Resort Al Marjan Island and Mövenpick Resort Al Marjan Island, discussed how major tourism developments currently underway are expected to reshape the market over the coming years.
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Veller said that while several large-scale hotel projects have been announced in recent years, many remain in early development stages. With typical hotel construction timelines of 3 to 5 years, she noted that new supply is unlikely to keep pace with rising demand in the near term.
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“This clearly signals a two- to three-year window of huge opportunity for existing operators and players already in the market,” she said, adding that projects launched in 2024 and 2025 are only beginning development, with many not expected to come online until later in the decade.
These expectations are reinforced by market data. According to a report produced by Stirling Hospitality Advisors, visitor demand in Ras Al Khaimah is projected to exceed available hotel rooms by around 1,300 keys by 2030. The report suggests that the supply gap will begin to emerge from 2027 onwards, creating a prime investment window for developers launching hotel projects between 2026 and 2029.
Strong market conditions are expected to support robust performance for existing hotels, while also opening opportunities for alternative accommodation formats, including serviced apartments, short-term rentals, and branded residences, to cater to growing visitor volumes.
The discussion also focused on how operators are positioning themselves for the next phase of growth. Harrington said his approach has been to prepare early for anticipated shifts in guest demographics and market dynamics.
“We’ve made a conscious decision to lean into being complementary, not competitive,” he said, referring to the expected impact of Wynn Al Marjan Island, which is forecast to significantly elevate the emirate’s international profile.
Rather than competing directly with large-scale attractions, Harrington explained that existing hotels are focusing on positioning themselves as lifestyle and experiential hubs, where guests dine, socialise, recover, and extend their stays around major developments.
Operational readiness, he added, will be critical. “That means sharpening our identity, investing in service depth now, upgrading experiences, and ensuring our teams are ready for a more globally sophisticated guest profile. You either prepare for what’s coming, or you don’t.”
One of the sector’s growing challenges, however, is attracting and retaining senior hospitality talent, as Ras Al Khaimah becomes increasingly competitive on a global stage.
Addressing this issue, Veller said talent retention cannot be solved by hotels and operators alone. She highlighted the importance of broader investments to enhance the emirate’s overall livability, noting ongoing master planning efforts focused on healthcare, education, transport infrastructure, and employment opportunities.
Beyond hotel developments, Veller noted that tourism growth is driving demand across a wide range of supporting industries, creating opportunities for investors with significantly lower entry barriers. These include laundries, bakeries, staffing agencies, cold storage facilities, logistics providers, and transportation services, all of which are expanding alongside the emirate’s hotel pipeline.
“These businesses are now growing and still represent a very solid opportunity,” she said, noting that such investments require far less capital than hotel developments, which can range from $50 million to $500 million.
Residential development was also highlighted as an area of continued opportunity, particularly as new master plans are rolled out. Veller said these projects are expanding investment options in the real estate market while also supporting the needs of a growing workforce.
Social infrastructure remains a priority, with sustained demand for schools, clinics, and other education- and family-focused facilities. Office space, particularly flexible and non-traditional formats, is also expected to remain in high demand as Ras Al Khaimah’s business ecosystem continues to mature.
The emphasis on livability is echoed in the Stirling report, which identifies quality-of-life investments as a key driver of sustained hospitality demand and a critical factor in attracting and retaining talent. Continued investment across healthcare, education, employment hubs, and transport connectivity is also supporting population growth, with the emirate’s population projected to reach around 650,000 by 2030 and approximately 730,000 by 2034.
Industry stakeholders say these combined developments will play a central role in strengthening Ras Al Khaimah’s long-term competitiveness, not only as a tourism destination but also as a place where senior hospitality professionals can live and work sustainably.
Azza Al Ali is a reporter from Ras Al Khaimah, dedicated to sharing stories that bring the community’s voices to life. She’s passionate about connecting with people and highlighting what truly matters to them.
