Dubai hotels slash prices by up to 40% starting in September

Zahid Mehmood August 28, 2026 Business
Dubai hotels slash prices by up to 40% starting September

Hotel prices in Dubai are expected to drop by up to 40% from September, offering travellers an opportunity to find more affordable stays in the city. Travellers booking hotels in Dubai may also find the same room listed at different prices across online booking platforms, making it worthwhile to compare rates before making a reservation. A hotel price comparison service says it scans multiple booking websites to help travellers identify potentially lower rates for the same room.

Travellers can compare prices across platforms before making a reservation to ensure they are getting the best available deal. Pricing is one of the most powerful and visible tools a hospitality brand can use to shape customer perception. Beyond its role in revenue management, the way a price is presented communicates what the brand values and how it wants guests to perceive the experience.

The price reductions are being supported by Dubai’s AED 2.5 billion economic relief package, which provides hotels with exemptions and relief on certain municipal fees, including the Tourism Dirham. Several four- and five-star hotels are reportedly offering discounts of around 30% to 35% on standard room rates, along with additional perks such as complimentary dining credits and free stays for children.

Dubai had around 159,300 hotel rooms in the second quarter of 2026, with another 4,900 rooms expected to be completed soon. Abu Dhabi had about 33,650 hotel rooms during the same period, with around 120 more rooms expected to open by the end of the year.

Hotel operators are being more cautious about building new properties. Some projects are being delayed, while companies are focusing on improving existing hotels. New hotel developments are likely to move forward once demand for rooms becomes stronger. According to JLL, this cautious approach is mainly due to short-term concerns about project timing and execution. It does not indicate a loss of confidence in the UAE’s long-term tourism industry.