Luxury hotels driving strong growth in Dubai hospitality sector

Dubai’s luxury hospitality sector is at the heart of a significant upturn in 2025, with five-star hotels leading gains in occupancy, room supply and average daily rates, according to newly published data from Cavendish Maxwell.

Between January and August 2025, the city’s total hotel room inventory reached approximately 152,300 across 818 properties, with the five-star segment accounting for roughly 54,100 rooms.

Across the city, average occupancy stood at 78.5%, up about three percentage points year on year. The five-star segment recorded the strongest growth in occupancy at 4.1%.

At the forefront of this success is IHG Hotels at Dubai Festival City, a four-hotel destination that continues to capture Dubai’s global appeal through its mix of world class hospitality, culinary excellence, and versatile event spaces. Taking prime location within one of Dubai’s most exciting retail, leisure, and entertainment destinations, Dubai Festival City is only minutes from Dubai International Airport, major business districts, and the connecting roads to Abu Dhabi, Sharjah, and beyond.

Situated on the edge of the historic Dubai Creek, IHG Hotels at Dubai Festival City offer visitors the best of both worlds, blending the charm of old Dubai with the energy of its modern skyline. The destination brings together InterContinental Dubai Festival City, InterContinental Residence Suites, Crowne Plaza Dubai Festival City, and Holiday Inn & Suites Dubai Festival City, creating a vibrant hub of hospitality, dining, and events.

Collectively, the properties feature extensive event spaces, exceptional culinary venues, and a full range of leisure and business facilities, making Dubai Festival City a preferred address for travellers seeking connection, comfort and memorable experiences.

Pranav Vohra, Cluster Commercial Director of IHG Hotels at Dubai Festival City, said that: “Dubai’s success as a hospitality destination is built on its diversity of guests, of experiences and of purpose.”

Vohra continued: “What we are observing now is less about standard stays and more about intentional ones. Guests are seeking meaningful connection, exceptional culinary moments and sustainable practices alongside the comfort and convenience they expect. Our Festival City cluster is uniquely placed to deliver that blend of business, lifestyle and local culture.”

Events by InterContinental Dubai Festival City offers one of the most versatile event portfolios in the city. From large-scale conventions and exhibitions to elegant waterfront celebrations, the destination provides a wide choice of venues designed to suit every occasion.

Go to https://www.dubaifestivalcityhotels.com for more.