Buying and Leasing Hotel Apartments: All You Need to Know
In 2024, Dubai welcomed a record 18.72 million international overnight visitors, marking a nine percent year-on-year (YoY) increase over 2023’s previous benchmark of 17.15 million.
The influx of international visitors continues to pay dividends for the city’s hotel sector. The emirate’s hotel inventory increased to 154,016 guestrooms across 832 properties last year, up from 150,291 rooms in 2023.
The 2024 figure places it among the world’s top destinations for room supply alongside London and surpassing global hubs like New York, Singapore and Paris. STR predicts that Dubai’s guestroom inventory forecast will reach 158,845 by the end of 2025.
Despite growing capacity, demand remains strong. Occupied room nights rose 3% YoY to an all-time high of 43.03 million last year, with the citywide occupancy rate averaging 78.2%, ranking among the highest globally.
Average daily rates climbed to US$147, while revenue per available room (RevPAR) rose 2% YoY to US$115, underscoring the market’s resilience and strong pricing power. Ultimately, despite global economic headwinds, Dubai’s hotel sector continues to deliver consistently exceptional results.
Purchasing a hotel unit in Dubai
Buying a hotel room in Dubai is becoming a popular option for investors seeking solid, passive income. Unlike a traditional rental property, a hotel unit is fully managed by professionals. Owners earn a share of the hotel’s revenue without having to worry about maintenance, leasing, or day-to-day operations.
As one of Dubai’s most-respected hotel developers, The First Group provides investors unrivalled opportunities to capitalise on Dubai’s incredible growth through the purchase of hotel units in its world-class developments, which are located in the city’s most popular precincts, including Dubai Marina, Jumeirah Village and Business Bay.
Investors benefit from consistent returns, zero maintenance fees and access to the firm’s full suite of VIP services. This includes personal account managers, transparent reporting, and added lifestyle perks like complimentary hotel stays, travel benefits and dining and leisure discounts.
Discover more on the Dubai Lifestyle Inspection Visit
For international clients considering investing in Dubai’s booming hotel market, The First Group offers the Dubai Lifestyle Inspection Visit – a curated, VIP travel experience that combines unrivalled hospitality with a personalised tour of Dubai showcasing the firm’s top-performing upscale hotels.
The package provides clients with complimentary return flights to Dubai and accommodation at one of The First Group’s award-winning hotels. During their stay, they get the chance to visit the firm’s top-performing hotel properties while gaining valuable insights into one of the world’s most dynamic real estate markets.
The package also includes premium lifestyle benefits, from dining vouchers at The First Group’s acclaimed restaurants to preferential access to the firm’s exclusive hospitality venues.
Whether you’re looking to diversify your investment portfolio or step into Dubai’s property market for the first time, purchasing a hotel unit offers an easy, rewarding path forward. With strong fundamentals and consistent growth, Dubai’s hotel sector continues to offer one of the best investment opportunities in the region.
