Ras Al Khaimah‘s hospitality sector is entering a new phase, poised for potential investment gains as demand is projected to surpass supply by 2027. A new report from Sterling Hospitality Consultancies indicates a structural shift toward high-value tourism already began in 2025, fueled by a 12% revenue increase over the previous year.The findings suggest a limited window for developers-between 2026 and 2029-to capitalize on anticipated shortfalls, notably in diversifying beyond the current luxury-focused hotel landscape.
Ras Al Khaimah is poised for a significant shift in its tourism and investment cycle, with hotel demand expected to outstrip supply starting in 2027, according to a new report. The findings present a timely investment opportunity for developers looking to capitalize on the emirate’s growing hospitality sector.
The eighth edition of the “Ras Al Khaimah Investment Pulse” report, released by Sterling Hospitality Consultancies, a subsidiary of Murjan Hospitality, indicates a structural shift in the market towards high-value international demand occurred in 2025. Occupancy rates reached 75.0%, while the average daily rate (ADR) rose to AED 618.1. This resulted in an 11.5% year-over-year increase in revenue per available room (RevPAR).
Total demand reached 4.8 million hotel nights, generating AED 1.06 billion in room revenue and AED 1.72 billion in total hotel revenue – a 12% increase compared to 2024. These results position Ras Al Khaimah as the third-best performing hotel market in the UAE for RevPAR and fifth best across the Gulf region, confirming a structural shift towards sustainable growth focused on quality and resilience.
The luxury sector is currently driving growth in Ras Al Khaimah’s hospitality industry, with five-star hotels accounting for over half of the existing rooms. More than 2,000 new rooms were announced in 2025, with an additional 2,500 scheduled for completion by 2027. This upcoming supply is strategically focused on the luxury market, while three- and four-star hotels present key opportunities to diversify tourism in the emirate, despite limited current supply.
The report highlights an emerging gap between supply and demand, forecasting a cumulative demand exceeding supply by approximately 1,300 hotel rooms by 2030. This shortfall is expected to materialize starting in 2027, creating a clear investment window for projects executed between 2026 and 2029. The imbalance is expected to support strong operational performance for existing hotels and increase opportunities for hotel apartments, short-term rentals, and branded residences capable of accommodating peak demand.
“Ras Al Khaimah has reached a stage where the story is no longer just about growth, but about timing and creating long-term value,” said Tatiana Veller, Managing Director of Sterling Hospitality Consultancies. “What we are seeing now is a market moving towards a more disciplined phase, where revenue quality is improving, supply is becoming clearer, and investors are gaining a clearer vision of where and when opportunities will emerge. This report aims to provide investors with the clarity and insight needed to make informed decisions as the market enters this new cycle.”
Beyond hospitality, the report emphasizes how Ras Al Khaimah’s extensive program to improve quality of life is bolstering long-term demand. Continued investment in healthcare, education, employment centers, and transportation infrastructure supports population growth, with the emirate’s population projected to reach approximately 650,000 by 2030 and 730,000 by 2034, further enhancing the investment appeal of hotel and mixed-use properties.
Based on comprehensive market analysis and interviews with public and private sector stakeholders, the eighth edition of the “Ras Al Khaimah Investment Pulse” report affirms the emirate’s position as a leading emerging destination for tourism and investment in the region, offering a clear vision and rare opportunities to inject capital before the market enters its next phase of acceleration.
Sterling Hospitality Consultancies will host a webinar on Thursday, February 5, 2026, at 2 p.m. to present the report’s key findings and discuss the identified investment opportunities.
