Dubai-based short-term rental operator Silkhaus announced on LinkedIn that it will cease operations at the end of November 2026. The company, which has operated in the Gulf market for five years, attributed the closure to sustained regional conflict and its direct impact on travel across the Gulf Cooperation Council (GCC).
The shutdown highlights the severe strain on Dubai’s hospitality sector following the outbreak of the U.S.-Iran war in late February. International visitor arrivals to Dubai fell by 44 percent to 6.97 million in the first eight months of this year. UAE hotel occupancy rates dropped to 67.6 percent in September, a significant decrease from 79.9 percent a year earlier.
Booking Data Shows Sharp Decline
Data from AirDNA indicates that forward bookings for Dubai short-term rentals are down 37.5 percent year over year for November. December and January bookings are running roughly a quarter below last year’s levels. This decline suggests that the winter peak season is unlikely to rescue smaller holiday-home operators following the disruptions seen in March and April.
Several major foreign carriers, including KLM, Singapore Airlines, Wizz Air, Cathay Pacific, United, Air Canada, Finnair, Luxair, and Virgin Atlantic, have suspended flights to Dubai into 2027. This suspension of inbound capacity has kept visitor numbers thin and reduced the customer base for short-term rental operators.
Stalled Expansion and Owner Uncertainty
Silkhaus had previously raised more than $10 million in equity and debt. This included a seven-figure funding round in 2025 intended to support an expansion into Saudi Arabia. That expansion now appears stalled, as Riyadh is no longer listed on the company’s website. The company’s LinkedIn post stated that the bright chapter of its operations has come to a close due to the ongoing conflict.
Property owners on the Silkhaus platform are facing uncertainty regarding their next steps. Some owners reported receiving an email on October 12 offering a move to First Class Property Management. Neither Silkhaus nor First Class Property Management responded to requests for comment regarding the transition process.
Guests with existing bookings and property owners currently on the platform are left without clear answers about how their arrangements will be handled. The closure of Silkhaus is expected to trigger further exits from the Dubai holiday-home market as other smaller operators face similar financial pressures.
Source: Skift
