An operating four-star hotel on Palm Jumeirah has been listed for sale at AED 475 million, equivalent to about $129 million, in a deal that could test investor appetite for Dubai hospitality assets amid a relative tourism downturn.

The RGEstate listing is for a 180-room hotel in an 11-storey building. At the asking price, each room is valued at approximately AED 2.64 million. Facilities include restaurants, meeting spaces, a rooftop pool, gym, café, prayer room, staff accommodation and storage areas.

Price Rises From Previous Listing

The property was first listed for sale in April 2025. An apparently similar property with the same plot area, built-up area and room count was offered for AED 400 million in January 2025, when the project was 95 per cent complete.

The difference represents a price increase of AED 75 million, or nearly 19 per cent, even though Dubai’s hotel market has since come under greater pressure.

A separate investment proposal identifies the hotel as Tumbi Hotels, part of Hilton’s Tapestry Collection. Under the proposal, the buyer could benefit from a five-year leaseback agreement offering a fixed annual return of 6 per cent.

At the current asking price, this would generate about AED 28.5 million annually, or AED 142.5 million over five years.

Tourism Downturn Weighs on Valuation

Regional conflicts and disruption to international aviation have reduced visitor arrivals in Dubai, putting pressure on hotel occupancy and room revenue.

Dubai hotel occupancy fell from 84.7 per cent in February 2026 to about 33 per cent in March, although signs of recovery emerged during the summer.

Karouz Hassan, director of Elephant Properties, said parts of the market have yet to adjust their pricing to reflect the decline in 2026 revenue. He said the scarcity of hospitality assets on Palm Jumeirah is a significant advantage, but does not necessarily justify high valuations.

The hotel’s sale could provide a key test of the true value of Dubai’s prime tourism assets under current market conditions.