UAE's Hotel Divide: Abu Dhabi Holds Up While Dubai Sinks

In H1 2026, the UAE hotel sector suffered a sharp downturn due to the US-Iran war, with national occupancy down nearly 28 percentage points and RevPAR down 31.8% year-on-year. However, the impact was uneven: Dubai, reliant on long-haul international and transit traffic, saw occupancy fall 24.6 points to 56.4% and RevPAR drop 35.2%, while Abu Dhabi, supported by domestic demand and events, saw occupancy decline only 13.5 points to 66.8% and RevPAR down 20.3%. Analysts expect slow recovery, not before early 2027, with inbound arrivals forecast to fall 48%.