The market is showing recovery markers as mid-market properties lead occupancy, wuth 3m150 new rooms scheduled for delivery by the end of 2026.
Dubai’s mid-market hotels led occupancy performance in the first half of 2026, while targeted promotions and staycation campaigns helped narrow the hospitality sector’s annual decline in recent months.
Upper Midscale hotels recorded occupancy of nearly 66 per cent and Midscale properties almost 64 per cent, outperforming the premium sector, according to Cavendish Maxwell’s Dubai Hospitality Sector H1 2026 Market Performance report.
Average occupancy across all hotel classifications stood at 56 per cent, down 30 per cent year-on-year, as regional airspace disruption and heightened geopolitical uncertainty weighed on demand.
