Tag Archives: Stirling hospitality

RAK to outpace hotel supply from 2027: Stirling Hospitality Advisors report

Stirling Hospitality Advisors revealed in their report that Ras Al Khaimah is entering a new phase of its tourism and investment cycle, where demand growth is set to outpace hotel supply from 2027 onwards, creating a clear and time-sensitive opportunity for investors. The report shows that 2025 marked a structural change for the Emirate’s hospitality market, as growth shifted decisively toward higher-value, international demand. Occupancy reached 75.0%, while average daily rates climbed to AED 618.1, driving RevPAR growth of 11.5% year-on-year. Total demand reached 4.8 million room nights, generating AED 1.06 billion in room revenue and AED 1.72 billion in total hotel revenue, up 12% compared to 2024. This performance positioned Ras Al Khaimah as the third-best RevPAR performing hotel market in the UAE and fifth across the Gulf, reinforcing its progress toward the 3.5 million annual visitor target by 2030 and highlighting a structural shift toward more resilient, quality-led growth. The growth of Ras Al Khaimah’s hospitality sector continues to be premium-led, with five-star hotels accounting for more than half of existing keys. While development momentum remains strong with over 2,000 keys announced in 2025 and around 2,500 keys scheduled by 2027, upcoming supply is strategically concentrated on the luxury market. The three- and four-star segments continue to be a key area of opportunity for emirate wide tourism diversification, supported by healthy, although still undersupplied pipeline activity, and a progressively diversifying demand base. A prominent finding of the report is the emerging demand–supply gap, with cumulative demand forecast to exceed supply by approximately 1,300 hotel keys by 2030. Undersupply is expected to begin materialising from 2027 onwards, creating a defined investment window for projects delivered between 2026 and 2029. …

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