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Midscale and Budget Hotels in Dubai’s Gold District and Deira Record Strong Booking Surge Ahead of Diwali

October 20, 2025

Hotels across Dubai’s heritage districts are reporting a strong upswing in bookings ahead of the Diwali festive period, underscoring sustained travel demand and renewed regional visitor confidence. According to internal data from the Accor Cluster: Dubai Deira & Dubai Gold District, overall occupancy across the portfolio climbed to around 82% in October, with average daily rates (ADR) rising by approximately 2–3% compared to the same period last year.

Within the historic quarters of Deira and the newly developed Gold District, midscale and economy hotels have recorded the sharpest increases in performance. The uplift is being driven primarily by families, regional travelers, and short-stay guests, many of whom opt to stay close to Dubai’s cultural landmarks, traditional markets, and retail corridors during the festive season.

Families and Regional Travelers Drive Growth

Traditional Dubai continues to be a focal point for Diwali celebrations, from Indian expats investing in gold to GCC families seeking a convenient and connected weekend getaway. Internal cluster data indicates that apartment-style properties such as Aparthotel Adagio Dubai Deira have witnessed notable growth in family bookings, while Novotel Dubai Gold District, Mercure Dubai Gold District and Mercure Dubai Deira recorded an uptick in short leisure stays led by GCC visitors. Guests cite location, value, and cultural proximity as key factors shaping their accommodation choices.

This trend underscores a broader evolution in travel preferences. Rather than prioritizing opulence or long-haul escapes, guests are seeking meaningful, experienced-led stays that combine comfort with cultural connection. While luxury properties continue to maintain steady occupancy, midscale and budget hotels are driving growth, reflecting a wider market movement toward value-led, community-focused travel.

Across Dubai’s hospitality landscape, families and group leisure travelers now account for nearly two-thirds of festive bookings, a share expected to rise through the end of the year. The data reflects not just a shift in price sensitivity, but a deeper desire among travelers for authentic, localized experiences that feel rooted in place and tradition.

Evolving Travel Behavior Post-Pandemic

Commenting on the trend, Rajdeep Roy, Cluster Director of Revenue, Shared Services, Valor Hospitality Partners said the momentum reflects both sentiment and practicality.

“We’ve seen a clear shift in how travelers view the festive season,” Roy noted. “Guests today are seeking connection. The Gold District’s blend of heritage, accessibility, and community spirit makes it one of Dubai’s most compelling destinations this time of year.”

He added that travelers are increasingly choosing 2–4-night stays, preferring to celebrate close to home rather than embarking on long-haul holidays, a pattern that continues to shape demand in Dubai’s midscale segment.

Positive Outlook for the Festive Quarter

With Dubai entering one of its busiest travel periods, the cluster anticipates occupancy levels to exceed 85% during the Diwali weekend, supported by last-minute regional travel and domestic staycations. As Dubai continues to position its heritage neighborhoods as vibrant lifestyle hubs, the performance of Deira and the Gold District illustrates how culture-rooted hospitality is driving both visitor engagement and business resilience across the city’s evolving tourism landscape.

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