Qatar has approximately 3,500 hotel keys in its development pipeline through 2025, with hotels accounting for 83% and hotel apartments comprising 17%, according to ValuStrat’s latest research.
As of the third quarter (Q3) of 2024, Qatar Tourism estimated the total hospitality stock at 40,053 keys, with 67% of these in the 4- and 5-star categories, and 7.5% classified within the 1- to 3-star segments. The number of hotel and serviced apartment units (both branded and non-branded) stood at 13,500.
Tourism Growth and Occupancy Rates
Qatar recorded over 3.9 million foreign arrivals year-to-date (YTD) as of Q3 2024, reflecting a 25.6% increase compared to the previous year. This growth was primarily driven by government-hosted local and international events, especially during the cooler months.
Visitor demographics showed that 44% of foreign arrivals were from GCC countries, followed by 22% from Europe and 20% from other Asian countries.
Hospitality metrics also improved, with the average daily rate (ADR) rising 6% year-over-year (YoY) to QR430 and revenue per available room (RevPAR) increasing 30% YoY to QR284. Hotel occupancy reached 66%, a 23% YoY rise. ADR for five-star hotels was QR603, while three- and four-star hotels recorded ADRs of QR195 and QR243, respectively.
Tourism Initiatives and Seasonal Attractions
Qatar’s cruise season commenced with 95 ships expected to bring 43,000 passengers. Additionally, Lusail launched its Winter Wonderland as part of year-end festivities. The GCC’s new “Grand Tours visa,” set to be implemented by year-end, is anticipated to enhance free travel within the six Gulf countries.
Real Estate Market Stability
ValuStrat’s Q3 2024 report highlighted continued stability in Qatar’s real estate market. While high-end areas saw increased rental rates for larger units, the broader market remained steady. The ValuStrat Price Index held firm at 96.6 points, showing no significant quarterly or annual changes.
The apartment index stood at 97.5 points, and the villa index was 96.3 points, with valuations in both segments stable on a quarterly and yearly basis.
Outlook
The real estate and hospitality sectors demonstrate a stable yet optimistic trajectory. While most areas show consistent performance, select segments indicate opportunities for growth, supported by strategic initiatives and an influx of tourists.
