Emaar expects return to pre-war occupancy levels at Dubai hotels in next 12 months

Dubai ​real estate developer Emaar's Dubai hotels ‌are ​currently seeing an occupancy rate of around 60%, its founder and chair told Reuters on Monday, adding that the company ‌expects a return to pre-war levels in the next 12 months. "We were dealing with 83% occupancy. During the war, we crashed down to 20, 25. Now we're back to ‌about 60% occupancy. We're very happy with 60% occupancy. At least our hotels ‌are operating," Mohamed Alabbar said in an interview.

The Iran war has led to heavy disruptions to energy shipments, logistics and travel to and via the Gulf. International travel to the Middle East, North Africa ⁠and South Asia ​is expected to ⁠fall 14% this year, according to consultancy Tourism Economics, dragged down by a more than 30% fall in ⁠Gulf countries, before rebounding in 2027.

"The truth is that in Dubai we've been spoiled. ​You know, we are growing 9, 10% a year for so long," Alabbar ⁠said. "So this change is quite drastic." Demand was coming back, supported by more international flights, he added however. While ⁠Gulf ​carriers have gradually ramped up capacity, some European carriers are expected to return to the region only next month after the EU aviation safety agency issued ⁠advisories to avoid the Gulf airspace because of potential risks.

"I believe that in the coming ⁠few months, we'll ⁠go back not to the 80%, but I think we'll crawl back to normality in the coming, say, 12 months," Alabbar added, ‌referring to ‌occupancy.