High-End Accommodation Dominates the Market
Approximately 90% of Qatar’s hotel rooms are classified as four- or five-star, with most serviced apartments categorized as ‘deluxe,’ highlighting the country’s emphasis on luxury accommodations.
Tourism Growth Boosts Hotel Performance
Qatar’s hospitality sector has experienced notable improvements, driven by a surge in tourist arrivals. While the usual seasonal decline occurred during the third quarter due to summer’s high temperatures, the first half of 2024 saw record-breaking visitor numbers, according to the Cushman & Wakefield Q3 2024 Real Estate Market Review.
Over 2.6 million visitors arrived in Qatar in the first half of 2024, a 28% increase compared to the previous year’s record for the same period, the National Planning Council (NPC) reported. Saudi Arabia remains Qatar’s largest source of visitors, accounting for 29% of arrivals, with the GCC contributing 45% overall. India follows as the second-largest market, representing 8% of visitors.
Hospitality Supply Growth Slows
While tourism has surged, the pace of new hotel development has decelerated after a decade of rapid expansion. Over the past 12 months, fewer than 1,000 hotel keys were added, compared to an average of 2,800 keys annually between 2014 and 2023. Qatar’s total hotel and serviced apartment supply now stands at just under 40,000 keys.
Rising Occupancy and Rates Reflect Demand
The sector’s improved performance is evident in metrics for 2024. STR Global data shows overall hotel occupancy for January-September reached 66%, up from 53.7% in 2023. Average Daily Rates (ADR) also rose from QR407 in 2023 to QR431 in 2024.
In September 2024 alone, occupancy climbed to 63.4% from 57.7% a year earlier, while ADR increased from QR359 to QR380.
The Role of International Events
Qatar’s growing roster of international events—such as the Asian Cup, Formula 1, and Web Summit—has contributed to the hospitality sector’s success. These events attract diverse audiences, boosting occupancy and revenue.
Looking Ahead
Despite these gains, challenges remain. Sustained government investment will be necessary to further solidify Qatar’s position as a global destination for leisure tourism and events. As the sector evolves, the balance between supply and demand will play a critical role in ensuring long-term growth and stability.
