RAK hotel room revenues climb 17% on strong luxury demand

Ras Al Khaimah’s hotel sector recorded a standout year in 2025 as room revenues rose 16.8% year-on-year to AED 1.06 billion, driven by accelerating demand across the luxury segment, according to Stirling Hospitality Advisors’ eighth RAK Investment Pulse report.

Total hotel revenues reached AED1.72 billion, marking a 12% rise compared to 2024 and underscoring the emirate’s strengthening position as a high-value tourism destination.

Record visitation helped drive this performance, with overnight visitors reaching 1.35 million in 2025, a 6% year-on-year increase, according to Ras Al Khaimah Tourism Development Authority (RAKTDA).

Hotel occupancy levels climbed to 75%, while average daily rates rose to AED 618.1, resulting in an 11.5% increase in RevPAR, Stirling reports. This performance ranked Ras Al Khaimah third in the UAE and fifth across the Gulf for RevPAR, reflecting a structural shift toward quality-led, international demand.

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The report highlights that more than half of the emirate’s hotel keys now fall within the five-star category, with premium properties continuing to drive revenue growth.

Development momentum remains strong, with more than 2,000 keys announced in 2025 and around 2,500 expected to enter the market by 2027, predominantly in the luxury segment, taking the total inventory towards roughly 16,000 rooms by 2030. 

Major incoming brands include Wynn Al Marjan Island, the emirate’s flagship US$5.1 billion integrated resort, which will add 1,530 rooms when it opens in 2027, alongside Marriott (Westin, W, JW Marriott Al Marjan), Nobu, Nikki Beach, Fairmont, Four Seasons and Taj, as well as home-grown select-service brands.