Dubai's hotel business is pulling itself out of a deep slump. Emaar Properties now reports its hotels in the city are running at sixty percent occupancy. That's a big jump from the worst days of the crisis, when numbers crashed to just twenty percent. According to Reuters, Emaar's founder Mohamed Alabbar says the group's Dubai hotels are slowly getting back to normal. He expects occupancy to reach pre-war levels-over eighty percent-within the next twelve months.
Alabbar is cautiously hopeful. He points to the current sixty percent as proof that Dubai's tourism sector can bounce back. The group isn't back to its old numbers yet, but the steady climb shows Emaar's operations are strong and the city's hotels are recovering. The Dubai Department of Economy and Tourism (DET) also reports a sharp rebound. Citywide hotel occupancy hit sixty-six percent in August 2026. That's an 89% recovery compared to August 2025, according to recent WAM state news agency coverage.
From crisis lows to steady recovery
Before the war, Emaar's Dubai hotels ran at eighty-three percent occupancy. The conflict sent those numbers tumbling to between twenty and twenty-five percent. Now, with occupancy back at sixty percent, the rebound is clear. Alabbar says the group still has ground to make up, but he believes Emaar's hotels could return to pre-war levels within a year if things keep improving. This outlook matches the Dubai Economic Agenda D33, which puts tourism and hospitality at the center of the city's growth and foreign investment plans.
Dubai's wider tourism and hotel sector is also trying to regain its footing. Hotels, attractions, and travel companies have all faced ups and downs, but recent months show signs of stability. As reported earlier, travel firms are rolling out new packages to catch the renewed interest. Industry data from Hospitality.net shows occupancy rates are rising, but average room prices are still below 2025 levels. That leaves room for more gains as international visitors return.
Emaar and Eagle Hills target global expansion
While Emaar works to restore its Dubai business, Mohamed Alabbar is also leading Eagle Hills, another big UAE developer, into new territory. Eagle Hills has announced a twelve billion dollar investment in a major project in the Maldives. This is the company's first step into the Indian Ocean islands. The Maldives Waterfront & Marina project in Ras Malé will include international hotels, luxury homes, and shopping and entertainment spaces. The move shows the UAE's growing reach in real estate and hospitality, backed by strong capital and rules from the Central Bank of the UAE (CBUAE) and the Dubai Financial Services Authority (DFSA).
Alabbar says work on the five hundred and fifty hectare site could start as soon as the first quarter of next year. He also says Emaar might join the project, but he wants Maldivian companies and people to be partners. Local investment is key for the development. The announcement got wide coverage from top media, including The National, showing how important the project is for both the UAE and the Maldives.
Dubai's hotel sector is not just recovering. It's showing it can aim higher. Emaar's steady comeback and Eagle Hills' bold move into the Maldives point to a sector that's resilient and ready to grow. The next year will be crucial for Emaar's Dubai hotels to get back to full strength. The group's push for big projects abroad shows its confidence goes far beyond Dubai itself.
