Dubai’s mid-market hotels outperform premium sector in H1 2026 as market adjusts to reduced demand

Dubai’s mid-market hotels maintained comparatively higher occupancy than those in the premium sector in H1 2026 as regional airspace disruption and heightened geopolitical uncertainty weighed on hotel demand, says leading real estate advisory and property consultancy, Cavendish Maxwell. Hotels in the Upper Midscale category secured the highest occupancy rates at nearly 66%, while Midscale properties recorded rates of almost 64%. By contrast, Luxury and Upper Upscale hotels and resorts averaged 51% and 52% respectively, according to Cavendish Maxwell’s Dubai Hospitality Sector H1 2026 Market Performance report.

Read original source →

Frequently Asked Questions

What was the occupancy rate for Upper Midscale hotels?

Upper Midscale hotels secured occupancy rates of nearly 66%.

How did Midscale hotels perform in H1 2026?

Midscale properties recorded occupancy rates of almost 64%.

What factors affected hotel demand in Dubai?

Regional airspace disruption and heightened geopolitical uncertainty impacted hotel demand.

How did premium hotels perform compared to mid-market hotels?

Mid-market hotels outperformed premium sector hotels in occupancy rates.