Doha, Qatar: Qatar’s hospitality sector is witnessing growth with strong momentum as approximately 5,000 keys are projected to be handed over during 2024 and 2025.
The hospitality sector recorded an 11 percent annual increase in the Average Daily Rate (ADR) to QR480 while the Revenue per Available Room (RevPAR) surged by 53 percent to QR361 in the first quarter (Q1) of this year, according to Real Estate Research First Quarter 2024 by ValuStrat.
In the corresponding period, hotel occupancy stood at 75 percent showing a surge by 38 percent year-on-year (YoY). The ADR for 5-star hotels was QR645, and for 3 to 4-star hotels was between QR250 and QR300.
Qatar Tourism has estimated the total hospitality stock to be 39,715 keys of which 74 percent are for hotel rooms, and 36 percent for hotel/serviced apartments; 67% of the hospitality stock was classified within the 4 to 5-star segments, whereas 7 percent was classified as 1 to 3-star divisions.
The notable openings included Millennium Place, a 3-star hotel (150 keys), Rixos Premium Qetaifan Island North (378 rooms), and Riviera Rayhaan along Salwa Road (185 keys). Qatar Airways also launched a luxury desert resort in Ras Abrouq in collaboration with Our Habitas. The premises comprises of 42 villas offering a range of one to four bedrooms.
Qatar aims to triple the number of visitors to 6 million by 2030. The expanding hotel sector, and associated F&B operations, will rely on Qatar significantly increase visitor numbers in the short to medium terms to support occupancy rates and maintain revenues.
The International Monetary Fund (IMF) projected a growth rate of 2 percent for Qatar’s economy in 2024; the World Bank’s estimate for Qatar’s real GDP also remained at 2.1 percent for the year.
In the first quarter of this year the total foreign arrivals reached more than 1.6 million, indicating a 40.1 percent increase on yearly basis.
In Q1, Qatar hosted the MotoGP-Qatar Airways Grand Prix, and the AFC U23 Asian Cup, boosting demand in the hospitality sector. Also, the Meryal Waterpark was launched in Qetaifan North, Lusail. The attraction is spread over 160,000 sqm
For a detailed perspective on the property market, visit: Qatar - Real Estate Review Q1 2024
