Tourism Breaking News
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. This imbalance is expected to support strong operating performance for existing hotels, while also increasing opportunities across serviced apartments, short-term rentals, and branded residential formats that can absorb peak demand.
Commenting on the findings, Tatiana Veller, Managing Director of Stirling Hospitality Advisors, said: “Ras Al Khaimah has reached a stage where the story is no longer just about growth, but about structure, timing, and long-term value creation. What we are seeing now is a market moving into a more disciplined phase, where revenue quality is improving, supply is becoming more defined, and investors have clearer visibility on where and when opportunities will emerge. With this report, we aim to provide investors with the clarity and insight needed to make informed decisions as the market enters this next cycle.”
