- Media
Ras Al Khaimah hotel demand to outpace supply from 2027, reports Arabian Business
Hotel demand for Ras Al Khaimah is anticipated to outpace supply from 2027 and onwards, Arabian Business reported, adding that this would create a clear and time-sensitive opportunity for investors as Ras Al Khaimah enters a new phase of its tourism and investment cycle.
Referring to the eight and latest edition of the RAK Investment Pulse report, published by Stirling Hospitality Advisors, Arabian Business stated that 2025 marked a structural shift for the emirate’s hospitality market, as it said that growth moved decisively towards higher-value, international demand.
It said that occupancy reached 75%, while average daily rates rose up to US$168, driving revenue per available room growth of 11.5% year-on-year. It continued that total demand reached 4.8 million room nights, ultimately generating around US$288 million in room revenue and $468 million in total hotel revenue, which in turn represented a 12% increase compared to the results from 2024.
Demand and supply
One of the key findings of the report is the indication of a demand and supply gap, as cumulative demand is anticipated to exceed supply by approximately 1,300 hotel keys by the year 2030. Furthermore, undersupply is expected to begin materialising from 2027 and onwards, which in turn establishes a defined investment window for projects to be delivered between the years 2026 and 2029.
With that in mind, Arabian Business said that this imbalance is expected to support strong operating performance for existing hotels, while in turn also increasing opportunities for short-term rentals and branded residential formats which can help absorb peak demand.
The performance of Ras Al Khaimah’s hotel market in 2025 has positioned it as the third-best Revenue Per Available Room (RevPAR) performing hotel market in the United Arab Emirates, further contributing to the target of sustaining 3.5 million annual visitors by 2030. The report indicates that growth continues to be led by the premium offerings of five-star hotels, as they account for over half of existing keys.
The Ras Al Khaimah Tourism Development Authority (RAKTDA) reported that there were a record 1.35 million overnight visitors in 2025, which marked a 6% year-on-year increase alongside the 12% overall growth in tourism revenues. According to a report by Stirling Hospitality Advisors, Ras Al Khaimah had welcomed 1.28 million overnight visitors in 2024, which at the time was a 5.1% year-on-year increase.
RAKTDA CEO Phillipa Harrison stated that 2025 was a landmark year for Ras Al Khaimah, and added that the emirate has grown in depth and breadth of its offering, as she commented that the emirate looks ahead to 2030 with the aim of shaping tourism which delivers long-term value for visitors, investors, and the community.
Forward-thinking development
Arabian Business stated that as development momentum remains strong, with over 2,000 keys having been announced in 2025, and around 2,500 keys being scheduled for delivery by 2027, it said that upcoming supply is concentrated in the luxury segment. It continued that the three-star and four-star hotel categories were identified as a key area of opportunity for emirate-wide tourism diversification.
Managing Director of Stirling Hospitality Advisors Tatiana Veller said that Ras Al Khaimah has now reached a stage where the matter at hand is no longer simply about growth, but rather about structure, timing, and the creation of long-term value.
She continued that the market is now moving into a more disciplined phase where revenue quality is improving, supply is becoming more defined, and investors are able to more clearly see where and when opportunities will emerge. She added that the RAK Investment Pulse report is intended to provide investors with the clarity and insight they need to make informed decisions as the market enters the next cycle.
The report also goes into detail about Ras Al Khaimah’s broader liveability agenda, and how it reinforces long-term demand fundamentals.
Arabian Business stated that continued investment across sectors such as education, healthcare, transport, and employment is supporting and stimulating population growth, with the emirate’s population currently being projected to reach around 650,000 by 2030, and then being expected to further rise to 730,000 by 2034.
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