The UAE’s hospitality sector is heading into summer with an unusual level of activity behind closed doors. A cluster of high-profile hotel renovations and temporary restaurant closures is marking this year’s seasonal slowdown, turning what is typically a quiet period into something more strategic.
Across the industry, operators describe a market adjusting to softer demand, shifting guest behaviour and a more uncertain regional backdrop, as the Iran war weighs on travel sentiment, disrupts flight networks and reshapes how and when people choose to travel.
That uncertainty is feeding directly into booking behaviour, with operators reporting shorter lead times and more last-minute decisions.
The UAE Hospitality Industry Barometer, released last week by the Global Restaurant Investment Forum (Grif) and consultancy Juniper Strategy, points to a market under pressure, with performance at existing venues down by an average of 27 per cent.
Yet the report also highlights strong confidence in the market, with 85 per cent of operators expecting conditions to improve within the next year despite the current slowdown.
Behind the closures and pauses, however, is an industry not in decline but in recalibration. What is emerging is a change in how guests book, how they spend and how operators respond.
The impact is not uniform, however. While some operators report immediate pressure on bookings and cancellations, others are seeing more gradual shifts in behaviour, particularly in how guests plan and spend. What is consistent across the sector is a growing sense that the traditional summer playbook no longer applies.
A more selective guest
“We’ve seen a direct impact on bookings and cancellations, so our planning is more conservative and focused on controllable segments,” says Samer Saleh, general manager of Centara Mirage Beach Resort Dubai, a family-focused beachfront property in Deira Islands.
The property is preparing for a softer summer, with “shorter booking windows, more price sensitivity, and increased demand for value-driven offers”, he adds.
The pressure is being felt most acutely in segments that rely heavily on international travel and advance bookings. But across the sector, one pattern is consistent: demand has not disappeared, but it has become more selective.
“Guests are booking later, making more spontaneous decisions rather than planning far in advance,” says Naim Maadad, founder of Gates Hospitality, the restaurant group behind venues including Reform Social & Grill and folly. “Spending habits are also becoming more considered, not necessarily reduced, but more intentional.”
That pattern extends across segments, even in the luxury space.
“There is a clear shift towards value-driven stays where guests want to understand exactly what’s included,” says Jean-Paul Dantil, general manager of Qasr Al Sarab Desert Resort by Anantara in the Empty Quarter. “Booking windows are shorter, particularly from regional markets.”
For some, the change is less about metrics and more about mood. At award-winning Emirati restaurant Gerbou, the pattern is evident in how guests use the space rather than how often they visit.
“People linger longer, choose more carefully, and seek spaces that offer calm and familiarity,” says Samer Abiad, director of operations. “Rather than sharp peaks, we anticipate a steady undercurrent.”
A similar change is being observed at newer venues, even as some continue to expand.
Scottie Bhattarai, chief executive of BNF Hospitality, which this week opened Isabel Mayfair in Abu Dhabi, its first international outpost, says guests are staying closer to home.
“Where they may have travelled more during the summer months in previous years, this year they are planning less of that in favour of staying home and continuing to push their businesses forward,” he says.
Shorter cycles, tighter planning
That change in behaviour, from increased sensitivity to pricing to preference for flexibility, is forcing operators to rethink how they approach the season.
“This summer we are taking a more agile approach than in previous years,” says Michael Robinson, general manager of Anantara The Palm Dubai Resort. “Historically, demand patterns were more predictable, whereas now we are planning in shorter cycles and staying closer to real-time booking trends.
“We are planning for a much softer summer year-on-year, but still a healthy level of demand overall,” he adds.
Even as that loss of predictability is felt across the board, operators emphasise discipline over reaction. For many, the focus is not on driving volume at any cost, but on maintaining stability. That means tighter cost control, more targeted offers and a greater emphasis on segments that are still showing resilience.
“We do not react with panic measures,” Gates Hospitality's Maadad says. “Instead, we adapt thoughtfully.”
Value, not discounting
That measured approach is also influencing pricing strategies. Rather than resorting to heavy discounting, many operators are focusing on adding value and refining the experience.
“Our approach remains value-led, focusing on enhancing the overall experience through curated inclusions rather than adjusting pricing,” says Pavlina Tarabova Alghamdi, general manager of Melia Desert Palm, a boutique, villa-style resort set within a private polo estate in Dubai.
The same approach is seen at Qasr Al Sarab, where the focus is towards experience rather than price competition.
“Rather than competing purely on rate, the focus is on creating more meaningful, experience-led stays,” general manager Dantil says.
One of the clearest stabilising factors is the strength of domestic and regional demand, operators say. “We expect a stronger reliance on UAE residents and GCC markets, with softer performance from long-haul segments,” says Saleh.
Rachid Bakas, general manager of Anantara Santorini Abu Dhabi Retreat, echoes this. “We expect our key markets to continue performing well, with the majority still coming from the UAE market,” he says, adding that residents are expected to play a larger role this summer.
Anantara The Palm Dubai Resort's Robinson also notes a similar reliance on domestic and regional markets.
“We are planning around consistency, focusing on our core communities,” adds Maadad. “Demand will still be there, it will simply be more selective.”
A window for reset
For many hotel operators, a quieter summer is not just a challenge but an opportunity to recalibrate further, from renovations and upgrades to a focus on operational efficiencies.
“We are reviewing opportunities to accelerate certain upgrade projects, factoring in that occupancy may be lower than in previous years,” Robinson says.
In the restaurant sector, the approach is more subtle, with operators using the period to refine rather than expand.
“Summer is when we observe closely … It is a time to refine quietly,” says Gerbou's Abiad.
