Palm Jumeirah hotel put up for sale for AED475 million as Dubai tourism downturn tests valuations
The 180-room property was first listed in April 2025 at 400 million.
An operational four-star hotel on Palm Jumeirah has been put up for sale for AED475 million ($129 million), testing investor appetite for hospitality assets as Dubai’s tourism industry navigates its most difficult period since the pandemic.
The RGEstate listing describes a 180-room property occupying a prime position on Palm Jumeirah. The asking price values the hotel at approximately AED2.64 million per room.
The 11-storey property’s facilities include meeting spaces, restaurants, a rooftop pool, a gym, a café, prayer rooms, staff accommodation and storage facilities.
The listing was first added in April 2025. An apparently identical property, with the same plot size, built-up area and number of rooms, was advertised by the agency for AED400 million in January 2025, when it was described as 95 per cent complete.
That represents an increase of AED75 million, or almost 19 per cent, despite the subsequent deterioration in Dubai’s hotel market.
Tourism drop
The regional conflict and associated disruption to international aviation have caused a steep fall in the number of travellers visiting Dubai, placing pressure on hotel occupancy, room rates and profitability.
Dubai hotel occupancy fell from 84.7 percent in February 2026 to approximately 33 percent in March, according to figures. However, many hotels have enjoyed a rebound this summer.
Property adviser Caroz Hassan, who drew attention to the hotel listing on LinkedIn, said the market had yet to adjust property valuations to reflect the decline in earnings.
“Everything is for sale at 2025 numbers, but when you ask for 2026 numbers, everyone refuses to show them and wants to focus on the potential of the asset,” Hassan said.
“The market is delusional – owners and agents.”
Hassan argued that the disconnect was not restricted to the UAE, with hotel and property owners in other international markets also reluctant to accept that the economic cycle may have turned.
The sale could provide an important test of how investors value trophy hospitality properties during a downturn — and whether Palm Jumeirah’s long-term appeal is enough to justify a price set before the full impact of the tourism slowdown became clear.
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