Dubai didn’t just end 2025 on a high – it set off fireworks and checked into record territory while it was at it.
Fuelled by festive travel, year-end celebrations and that ever-reliable winter sun, Dubai’s hotel sector posted its strongest December performance in nearly two decades, with revenue per available room (RevPAR) hitting its highest level since 2007, according to preliminary data from CoStar.
December occupancy climbed to a punchy 84.3% (up 3.4% year on year), while average daily rates rose 11.1% to AED 1,042 — pushing RevPAR up a glossy 15% to AED 878. In short, rooms were full, rates were high, and demand showed no sign of cooling.
So what’s pulling travellers back, while also bringing first-timers in droves? The answer lies in Dubai’s unbeatable December formula of guaranteed sunshine, a packed events calendar, headline attractions old and new, and a city that knows how to put on a show.
From festive beach clubs and desert experiences to blockbuster shopping, Michelin-star dining and headline acts, the emirate has perfected the art of the winter escape. Add new draws like cutting-edge attractions, fresh hotel openings and ever-evolving neighbourhoods alongside classics such as Burj Khalifa, Dubai Mall and the city’s world-famous New Year’s Eve fireworks, and you’ve got a destination that keeps reinventing itself without losing its sparkle.
That momentum peaked spectacularly on New Year’s Eve. Occupancy hit 94.1%, average rates soared to AED 2,286, and RevPAR smashed through the AED 2,000 barrier for the first time on record — a milestone moment for the market. In fact, for nine consecutive nights from December 23, hotels ran at over 80% occupancy with ADR consistently above AED 1,000, underlining sustained, high-value demand throughout the holiday stretch.
Looking ahead, the outlook remains bright. With an ever-expanding line-up of experiences, mega-events on the horizon and new attractions designed to tempt both loyal fans and curious newcomers, Dubai is proving that repeat visits don’t mean repeat experiences.
Also read: Dubai’s unstoppable momentum in tourism, shopping, and entertainment
