Research from STR Global has revealed that average room rates in the emirate reached $290 (£194) last August.
This places it far ahead of a number of other cities including Paris, New York, Rome and London where prices ranged from $280 to $230 per night.
In terms of revenue generated from room rentals, Dubai also took the top spot. Typical revenues per room per night topped $237 in Dubai, with the UAE city coming ahead of Paris and New York in second and third places, respectively.
Increased tourist number led to a strong room occupancy figure, reports the Gulf News. Occupancy rates stood at 81.6 per cent in Dubai over the course of the month.
Khalid A Bin Sulayem, director-general of the Department of Tourism and Commerce Marketing (DTCM) told the newspaper that there had been a significant increase in the number of tourists heading to Dubai from major international markets including Japan, Australia, Germany and the UK.