Dubai’s tourism recovery is expected to see international visitor numbers return ahead of hotel room rates, as demand stabilises and airline connectivity improves, according to hospitality major Accor, as reported by Gulf News.
The French multinational hospitality company said the Middle East hospitality market, including Dubai, continues to be on a long-term growth trajectory despite short-term disruptions caused by regional geopolitical tensions, reported Gulf News.
However, the company cautioned that recovery in pricing will lag behind occupancy improvements.
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The group stated that while inbound demand is gradually strengthening, hotel rates are unlikely to return to earlier peak levels in the near term. It added that it expects a full performance recovery across the region only by Q1-Q2 2027, according to Gulf News.
UAE hotel revenues per available room (RevPAR) have declined in recent months amid travel disruptions, underscoring volatility in the sector.
Accor also underscored rising demand for long-stay accommodation, driven by travellers seeking more flexible lodging options, which is supporting growth in the serviced living segment.
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The company, however, said temporary discounting is unlikely to permanently impact pricing, citing resilience in room rates following the post-pandemic recovery period, Gulf News cited in its report.
Reaffirming its regional outlook, Accor said it continues to pursue expansion and refurbishment plans across the Middle East while maintaining focus on employee retention and internal redeployment during the current slowdown phase, as reported by Gulf News.
