by Beatriz Meirelles, IHC

As we head into the UAE’s crucial busy season, I find myself reflecting on how dramatically the hospitality landscape has transformed over my past decade in the industry and how fierce the competition has become. Over the past several years, rapid growth, new supply and rising guest expectations have rewritten the rules of engagement. Today, the winning brands are those that deliver not only standout service but also compelling storytelling.

A Market Under Strain (and Opportunity)

Let’s start with the numbers. In the first half of 2024, UAE hotel revenues climbed to AED24.6 billion, a 7% year-on-year increase. Occupancy rates averaged 79.5%, among the highest globally and up 3.7% from H1 2023. Earlier in 2025, UAE-wide occupancy peaked at 81.3% in Q1. 

Across the GCC, Revenue per Available Room rose 5.4% in 2024 compared to 2023, driven largely by stronger occupancy. That growth has continued despite an influx of new hotel supply entering the market. The region has added over 35,000 rooms in the last decade, with luxury product now accounting for roughly 19% of total rooms. 

On the demand side, Dubai alone welcomed 5.31 million overnight visitors in the first quarter of 2025, up 3% year-on-year. In January the city recorded 1.94 million overnight arrivals, up 9% compared to January 2024.

The broader context is also compelling as according to the World Travel & Tourism Council, the UAE’s travel and tourism sector contributed AED220 billion to GDP in its most recent reporting period, equivalent to 11.7% of the economy and up 26% from the year prior.

Together, these figures tell a clear story: demand remains strong, but so does supply and margin pressure is real.

Competition Isn’t Just About Rooms – It’s About Recall

With such robust dynamics, hospitality operators can no longer rely on amenities or service alone to stand out. When two hotels offer comparable room layouts, pool access, culinary experiences or wellness facilities, the true differentiator often becomes brand perception and, before that, visibility.

That is why we are now seeing a surge in marketing and communications strategies at all levels across the sector:

• Tiered storytelling and brand narratives are helping hotels and venues connect emotionally and culturally with target audiences.
• Cross-sector partnerships, for example, between a hotel and a local arts initiative or retail brand, are extending reach beyond traditional travel channels.
• Innovative digital campaigns using short-form video, influencer tie-ups and immersive AR/VR previews are being deployed aggressively to spark consideration and bookings.
• Loyalty and retention programmes are being reinvented as storytelling platforms (such as GHM Hotels’ “Your Journey With Us”) rather than simply point-based systems.

For groups and venues that host live events, weddings, concerts, corporate gatherings or hybrid formats, the stakes are even higher. The opportunities are significant, but audiences are inundated with choice. If a venue’s communications fail to cut through, it risks being overlooked in RFPs or buyer shortlists, even when everything “on paper” is excellent.

Why Agencies with Deep Sector Insight Matter

Over the past decade working in hospitality, I have seen first-hand how the right communications partners can transform a hotel’s trajectory. Having worked on both the agency and brand sides, I understand how critical it is to align marketing with hotel operations, event booking cycles, group sales, yield dynamics and guest personas. When that alignment happens, marketing stops being an afterthought and becomes a core driver of the revenue engine.

In this environment, the “plug-in marketing team” model is especially powerful. It integrates directly into your annual planning, aligns with sales and revenue strategies and adapts dynamically to seasonality, competitor activity and guest sentiment. This is the approach we are concentrating on with IHC’s hospitality vertical.

Going Into the Busy Season, the Message Is Clear

• Differentiation is now a must, not a bonus: Two venues of similar quality will be judged on visibility, reputation and narrative.
• Comms investment must scale with ambition: Whether in digital, influencer strategy, PR, content, or partnerships, brands that skimp on marketing will be outpaced.
• Speed and agility are essential: The ability to pivot campaigns, respond to trends, or tailor messaging regionally or by guest segment is no longer optional.
• Metrics matter: In such a competitive space, marketing must be measurable, impacting direct bookings, brand recognition, sentiment and ultimately ROI.

This season will be won by the boldest. For hospitality groups, venues and operators in the UAE, the time is now to tell their story in the most compelling and visible way. Between supply expansion and demand maturity, marketing and communications will no longer be ancillary, they will be the defining edge.

Established in 2011, IHC provides integrated communications solutions across hospitality, facilities management, construction, lifestyle and corporate sectors, with a proven track record for combining public relations, digital engagement and brand storytelling to deliver powerful business outcomes.

 UAE Hospitality at a Glance

• AED24.6 billion – Hotel revenues in H1 2024, up 7% YoY
• 79.5% – Average hotel occupancy in H1 2024, among the highest worldwide
• 81.3% – Hotel occupancy in Q1 2025, up 2.8% YoY
• 1.94 million – Dubai overnight visitors Jan–Mar 2025, up 3% YoY
• 5.94 million – Dubai overnight visitors in Jan 2025 alone, up 9% vs Jan 2024
• 5.4% – GCC-wide RevPAR growth in 2024 vs 2023
• AED220 billion (11.7% of GDP) – UAE Travel & Tourism contribution to national economy

About Integrated Hospitality Connections

Integrated Hospitality Connections is the dedicated hospitality division of IHC, established to meet the unique needs of the region’s hotel, F&B, tourism and lifestyle sectors. Leveraging deep industry expertise with strong regional networks, the division provides strategic communications, partnerships and business development support tailored to hospitality brands. Its mission is to help clients stand out in a competitive market by reaching the right audiences, building meaningful collaborations and driving long-term, sustainable growth.