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

The UAE’s hospitality sector had a rough first half of 2026, as regional disruptions tied to the U.S.-Iran war hit international travel demand and airline operations. But the damage wasn’t evenly spread. UAE-wide hotel occupancy fell nearly 28 percentage points year-on-year through June, and RevPAR dropped 31.8%, according to a CBRE report that cited CoStar data. Behind that national number, though, is a split market: “Dubai recorded the sharpest declines, while Abu Dhabi benefited from stronger domestic demand and events-led tourism activity,” the report said. Dubai’s occupancy decline was nearly double Abu Dhabi’s in the first half. Dubai occupancy fell 24.6 percentage points year-over-year, to 56.4% from 81% in the first half of 2025, while Abu Dhabi's fell 13.5 points, to 66.8% from 80.3%. Ras Al Khaimah's occupancy declined by 23.3 percentage points, to 49.3% from 72.6% in H1 2025, according to CoStar. "From an occupancy standpoint, Ab