Dubai hotels brace for strong demand as business tourism season returns

Dubai: Dubai's hotel sector is preparing for a strong period of demand as the business tourism, conferences and events season approaches, with hotel operators expecting occupancy rates to reach between 75% and 85% and average room rates to improve. Industry executives said booking indicators for the coming months are positive, with advance reservations already being recorded from September onwards. They expect demand to accelerate with the start of the events season and the return of business travellers, alongside an improvement in leisure tourism compared with the summer months. Occupancy expected to rise Walid Al Awa, General Manager of Tamani Marina Hotel, said current occupancy levels are around 65%, with expectations of rising to about 80% as the business events season begins. He said the hotel has already started receiving bookings for September, coinciding with the return of business and leisure tourism, adding that room rates are improving as demand increases. According to Al Awa, September marks an important turning point for demand with the return of conferences, exhibitions and events to Dubai's calendar. Positive booking indicators Hosni Abdelhadi, Chief Executive Officer of Carlton Hotels, said the group is targeting occupancy rates of 80% in the coming period and has already begun receiving advance bookings. He said current demand indicators support expectations of stronger bookings, particularly with the return of business tourism, conferences and events, which remain key drivers of hotel demand in Dubai. Abdelhadi also expects leisure tourism bookings to increase as travel activity improves compared with summer levels. He added that the combination of business travel and leisure tourism provides Dubai hotels with a diversified demand base that supports hospitality sector performance and room rates. Advance reservations Wael Al Bahi, General Manager of Copthorne Hotel Dubai, said the property is targeting occupancy of up to 85%, supported by advance bookings linked to the business season. He noted that market indicators begin improving in September and continue through to the end of the year, reflecting expectations of increased visitor arrivals for both business and leisure purposes. Improving demand Mohamed Awadalla, Chief Executive Officer of Time Hotels Group, said demand for hotel accommodation has shown significant improvement since mid-September, with the group targeting occupancy rates of up to 75%. He said conferences, exhibitions and business events play a major role in boosting occupancy, particularly for hotels located near event venues and key business districts. Events driving hotel performance Fathi Khouzli, Regional Vice President of Hyatt Hotels in Dubai and General Manager of Grand Hyatt Dubai, said hotels near the Dubai World Trade Centre have already recorded strong occupancy levels alongside a number of events taking place this week. He noted that average room rates have increased, while some hotels have approached full occupancy. Khouzli said dozens of events scheduled at the Dubai World Trade Centre between September and the end of the year are expected to provide significant support for the hospitality sector through business tourism. He also forecast stronger leisure tourism demand compared with summer levels, providing hotels with an additional source of bookings alongside business travellers and event participants. According to Khouzli, demand generated by major events is not limited to hotels located near venues but extends across the city as visitor numbers increase. He also highlighted the role of the Dubai Department of Economy and Tourism in supporting the hospitality sector through promotional initiatives and marketing campaigns. Strong outlook for final quarter Timur Ilgaz, General Manager of Arjaan by Rotana, Centro Barsha and Damac Hills 2 Edge by Rotana, said bookings have shown strong demand over the past two months, with positive momentum continuing as the final quarter of the year approaches. He said the group's hotels are currently averaging around 85% occupancy and that forward bookings are in line with, and in some cases exceeding, levels recorded during the same period last year. Ilgaz said Dubai continues to benefit from a balanced mix of leisure tourism, business travel and events, giving operators confidence about the coming months. He added that the emirate traditionally experiences a surge in activity from October onwards, driven by corporate bookings, exhibitions, events and strong leisure tourism demand, with current booking indicators remaining encouraging.