Tourism Breaking News
Stirling Hospitality Advisors highlights that by 2027 Ras Al Khaimah’s total hotel inventory is expected to double with 7,537 new rooms added to the existing 7,144, bringing the total to over 14,600. Notably, 71% of this pipeline falls within the five-star category, further cementing RAK’s status as a premier luxury hospitality destination. The latest research showcases the Emirate’s growing tourism sector, which has seen a robust increase in visitor numbers, a rapidly evolving hotel pipeline, and the emergence of branded residences as a key investment asset.
With tourism at an all-time high, Ras Al Khaimah’s hotel sector is poised for significant expansion. The Emirate is set to welcome over 15 international hotel operators across all segments, from luxury to midscale. New entrants such as Wynn, Millennium, Radisson Red, Ushuaïa, and Rove Al Marjan underscore RAK’s growing and diversified hospitality landscape. Providing valuable insights into market performance, supply trends, and investment opportunities, the report also highlights a shift in market leadership among hotel operators, with Accor surpassing Hilton in 2024 due to strategic rebranding initiatives. This transition was fueled by the conversion of Al Marjan Resort into Pullman and the rebranding of Hilton Beach Resort into Rixos Al Mairid, reflecting the Emirate’s dynamic hospitality landscape and commitment to delivering world-class guest experiences. Meanwhile, Marriott is rapidly catching up – the operator currently has the largest pipeline in RAK with major developments like The Westin, W Al Marjan, and JW Marriott Al Marjan all scheduled to open by 2027.
Commenting on the report’s findings, Tatiana Veller, Managing Director of Stirling Hospitality Advisors, said: “Ras Al Khaimah’s hospitality sector is undergoing a remarkable transformation. The combination of strong government support, ambitious development plans, and the arrival of global hotel brands and investors is setting the stage for a new era of growth. Our latest edition of RAK Investment Pulse provides invaluable insights into these shifting dynamics, offering investors, operators, and developers a comprehensive guide to the opportunities that lie ahead.”
The report also highlights the rapid expansion of branded residences, a segment gaining momentum in RAK’s real estate market. While the Emirate currently has no operational branded residences, 16 projects are in development, set to introduce approximately 5,600 units by 2029. The majority (63%) of these projects are concentrated on Al Marjan Island, with the rest distributed across Al Hamra, Mina Al Arab, and the newly established Beach District. This surge is fueled by the entry of notable global brands such as Waldorf Astoria, JW Marriott Residences, Nobu, Nikki Beach, and Ritz-Carlton, as well as a selection of high-end fashion and lifestyle brands, reinforcing RAK’s position as an emerging luxury investment hub.
Ras Al Khaimah’s tourism momentum continues to grow with no signs of slowing down. The Emirate welcomed 1.28 million overnight visitors in 2024, marking a 5.1% year-on-year increase. International visitors accounted for 76% of total guest nights, with growth stabilising at 4.3% following a sharp 24% surge in 2023. Despite this adjustment, Ras Al Khaimah is on track to exceed initial projections, with visitor numbers anticipated to reach 3.5 million by 2030, reflecting a robust compound annual growth rate of 19%. This sustained demand has led to a 14% rise in the Average Daily Rate (ADR), pushing RevPAR to AED 421. While occupancy rates adjusted slightly with a 2.4% year-on-year dip, this indicates a strategic shift towards attracting premium visitors over high-volume tourism.
Additionally, the much-anticipated opening of Wynn Al Marjan Island in 2027, the region’s first fully integrated resort, is set to be a transformative milestone for Ras Al Khaimah’s hospitality sector. Expected to attract high-net-worth travellers, the resort will not only increase demand but also reshape the guest profile. As a result, the average number of guests per hotel room (double occupancy factor) is projected to shift from a typical family resort level of 2.5 to a more mature, luxury-driven range of 1.75–1.85. These dynamics are set to drive annual room night demand from 2.41 million to 4.28 million by 2027. Wynn’s presence will not only elevate the Emirate’s global appeal but also reinforce its position as a leading player in the luxury hospitality market.
Looking ahead, the report highlights significant investment opportunities across various sectors in Ras Al Khaimah. While luxury properties remain dominant, there is a clear undersupply in the midscale, and upper midscale price segments, as well as extended-stay supply, presenting strong potential for investors in serviced apartments, lifestyle hotels, and family-friendly resorts. Furthermore, sectors such as residential, retail, F&B, staff accommodation, education, and healthcare are also primed for growth, further enhancing RAK’s expanding tourism ecosystem.
With supply and demand expected to remain balanced until 2025, additional hotel inventory will be needed from 2026 onwards to keep pace with rising visitor numbers. Forecasts indicate the Emirate could comfortably accommodate an additional 8,500 hotel rooms by 2030, reinforcing its long-term growth potential and attractiveness to investors.
As a subsidiary of Ras Al Khaimah (RAK) Hospitality Holding, Stirling Hospitality Advisors asset-manages over 3,500 hotel rooms across multiple markets and oversees a USD 1.25 billion hospitality and resort portfolio.
