Sterling Hospitality Consulting has released the fourth edition of its ‘Ras Al Khaimah Investment Pulse’ report, highlighting the rapid growth of Ras Al Khaimah’s hospitality and real estate sectors. The emirate’s tourism sector is witnessing remarkable growth, with visitor numbers increasing significantly, the hotel portfolio rapidly developing, and branded residences emerging as key investment assets.
With tourism at an all-time high, Ras Al Khaimah’s hotel sector is set to expand significantly. By 2027, the emirate’s total hotel inventory is expected to more than double, with 7,537 new rooms added to the current 7,144, taking the total to over 14,600 hotel rooms. 71% of the upcoming project portfolio is in the five-star category, reinforcing the emirate’s position as a leading destination for luxury hospitality.
15 Global Companies
Ras Al Khaimah is set to welcome more than 15 global hotel companies across all categories, from luxury to mid-range. New companies such as Wynn, Millennium, Radisson RED, Ushuaia and Rove Al Marjan are testament to the emirate’s growing and diverse hospitality landscape. They provide valuable insights into market performance, supply trends and investment opportunities.
The report points to changes in the leadership hierarchy among hotel companies in the market, with Accor able to overtake Hilton in 2024 thanks to its strategic brand renewal initiatives. This change comes in light of the transformation of Al Marjan Resort into Pullman Resort and Hilton Beach Resort into Rixos Al Mairid Resort, reflecting the dynamism of the local hospitality sector and the emirate’s commitment to providing world-class experiences for its guests.
Marriott is keen to keep pace with the growth in the emirate, as it operates the largest number of hotels and is preparing for several major projects expected to open in 2027, most notably The Westin Hotel, W Hotel Marjan Island and JW Marriott Resort Marjan Island.
A remarkable transformation
“The hospitality sector in Ras Al Khaimah is witnessing a remarkable transformation, and the emirate is anticipating a new era of growth thanks to strong government support, ambitious development plans and the entry of investors and global hotel brands into the local market,” said Tatiana Feller, Managing Director of Sterling Hospitality Consulting. “The report highlights the rapid expansion of the branded residences sector, which is gaining momentum in the real estate market in Ras Al Khaimah. The emirate currently lacks any housing in this category, with 16 projects under development and around 5,600 residential units expected to open by 2029. The majority (63%) of these projects are concentrated on Al Marjan Island, while the remaining portion is distributed across the Al Hamra, Mina Al Arab and the newly established Beach area.
Tourism momentum
Ras Al Khaimah’s tourism momentum continues to grow with no signs of slowing down. In 2024, the emirate received 1.28 million overnight visitors, recording a 5.1% increase compared to previous years. While international visitors accounted for 76% of total visitors, growth stabilized at 4.3% after a sharp increase of 24% in 2023.
Despite this, the emirate is on track to exceed initial expectations; The number of visitors is expected to reach 3.5 million by 2030, reflecting a high CAGR of 19%. As a result of this sustained demand, the average daily rate increased by 14%, and consequently, revenue per available room increased to AED 421. The slight decrease in occupancy rates by 2.4% annually indicates a strategic shift towards attracting high-end visitors to tourism.
Investment opportunities
The report indicates significant investment opportunities across various sectors in the emirate. While luxury properties remain the dominant category in the market, supply is clearly lacking in the mid- and upper-mid-priced categories and in long-stay options, thus presenting significant opportunities for investors in hotel apartments, modern hotels and family-friendly resorts.
The tourism ecosystem in Ras Al Khaimah is expected to expand in light of the anticipated growth in all sectors of accommodation, retail, food and beverage, staff accommodation, education and healthcare. With supply and demand expected to stabilize by 2025, Ras Al Khaimah will need more hotel rooms from 2026 to keep up with rising visitor numbers. The emirate can easily accommodate an additional 8,500 hotel rooms by 2030, enhancing its long-term growth potential and its ability to attract investors.