Dubai’s hotel sector in the United Arab Emirates closed December 2025 with its strongest performance in nearly 20 years, according to CoStar data. Average occupancy reached 84.3 percent, while average daily rates rose to AED 1,042 and RevPAR climbed 15 percent year-on-year. New Year’s Eve saw record-breaking demand, with luxury hotels achieving near sell-outs. Officials attribute the surge to strong air connectivity, events, and sustained winter travel demand.