Qatar’s hospitality sector is set for expansion, with over 1,200 new hotel keys expected by the end of 2025, predominantly in the 4-star and 5-star categories.
As of 2021, the country had 29,400 hotel keys, which increased to 37,600 in 2022, 39,200 in 2023, and 41,800 in 2024, according to ValuStrat’s latest Real Estate Research Fourth Quarter report.
Tourism in Qatar surged, exceeding five million visitors in Q4 2024—an annual increase of 25%, largely driven by travelers from GCC countries, noted Anum Hassan, Head of Research in Qatar at ValuStrat. Consequently, hotel occupancy rose by 15% YoY, reaching nearly 70%. Key performance indicators also improved, with the Average Daily Rate (ADR) increasing by 5% and Revenue Per Available Room (RevPAR) growing by 21% YoY.
Notable hotel openings in Q4 2024 included:
The OQ (142 suites) in Lusail’s Waterfront district
West Walk Retaj (265 rooms) in Al Waab
The Muse (61 keys) in Fox Hills South
Qatar Tourism estimated the total hospitality stock at 39,828 keys, with 67% falling within the 4-star and 5-star segments, 7.5% classified as 1-star to 3-star hotels, and 25.5% consisting of hotel apartments.
From January to December 2024, 43% of foreign visitors came from GCC countries, followed by 21% from Asia and Oceania, 8% from Arab nations, 3% from the Americas, and 2% from Africa.
Hotel Performance & Rates
ADR (Average Daily Rate): $118 (up 5% YoY)
RevPAR (Revenue Per Available Room): $79 (up 21% YoY)
ADR for 5-star hotels: $166
ADR for 3-star hotels: $53
ADR for 4-star hotels: $66
Average hotel occupancy: 67% (up 15% YoY)
Qatar’s event calendar played a vital role in boosting tourism, featuring major sports events, Formula 1, international concerts, MICE gatherings, and cultural festivals.
Office & Retail Market
The commercial real estate sector remained stable, with minor rental rate declines in select prime locations. Retail performance saw slight corrections within a 5% range.
New Office Supply in Q4 2024: 114,000 sqm GLA, bringing total supply to 7.3 million sqm
Major additions: Lusail Plaza Tower and an office building in Fereej Al Soudan
Grade-A office supply: 60% in Doha, 40.2% in Lusail
Expected Office Supply for 2025: 180,000 sqm GLA
Office occupancy: 60%-65%, with higher rates in Msheireb Downtown, West Bay, and Lusail Marina
Average office rent: $18 per sqm, stable QoQ but down 2.2% YoY
With ongoing developments, Qatar’s real estate and hospitality sectors remain key drivers of economic growth, reinforcing the country’s position as a leading tourism and business destination.
Source: The Peninsula
