Qatar’s hospitality sector witnessed a significant boost in 2024, with a 29% increase in hotel occupancy rate compared to the same period in 2023.
According to a study by consulting firm ValuStrat, Qatar’s hotel occupancy rates stood at a steady 69%, signalling robust growth driven by several key factors.
From April to June this year, the Average Daily Rate (ADR) amounted to QAR454, an increase of 7% Y-o-Y. In the meantime, the Revenue Per Available Room (RevPAR) reached QAR312, an increase of 38% per annum.
However, the ADR for 5-star hotels was QAR630, while the ADR for three—and four-star hotels was QAR215 and QAR263, respectively.
Outlining the reasons for the market boost, Anum Hassan, Head of Research, Qatar, at ValuStrat, stated that Tourist arrivals increased by 26% year-on-year.
One of the major contributors to this growth was the expansion of Qatar’s entertainment and leisure sectors, which attracted more tourists and encouraged longer stays. The surge in tourist arrivals and the opening of new hotels helped maintain the momentum in the country’s hospitality industry.
The growth occurred primarily in the second quarter of the year, between April and June. The expansion is expected to continue as Qatar is positioning itself as a major leisure, business, and cultural tourism hub.
The rise in ADR indicates guests are willing to pay more for their stays, which reflects an overall improvement in the quality of service and accommodation.
One reason for this could be the opening of several high-end hotels and luxury resorts, which raised Qatar’s hospitality standards.
Similarly, the Revenue Per Available Room (RevPAR) grew by 38% year-on-year, reaching $85. This significant jump highlights the increasing profitability of the country’s hospitality sector.
One of the driving forces behind this growth is understood to be the introduction of the Simaisma Project, a large-scale cultural and entertainment project launched by Qatar’s Ministry of Municipality and Environment.
The $5.4bn project, spearheaded by Qatari Diar, covers an expansive 8m square meters. It includes a variety of attractions inclusing luxury resorts, an amusement park, a marina, a yacht club, residential villas, a golf course, restaurants, and retail shops.
The expansion of entertainment and cultural sectors through such large-scale projects is likely to continue drawing international visitors, as Qatar aims to diversify its tourism offerings.
According to Qatar Tourism’s latest data, the country’s total hospitality inventory stands at 39,915 keys, comprising 74% hotel rooms and 26% hotels and serviced apartments. Among them, 66% of total stock comprised four to five-star hotels, while 8% was classified within the three and four-star segments.
This substantial inventory provides Qatar with the capacity to accommodate a growing number of international visitors.
The rise in hotel occupancy and other key performance indicators is a testament to Qatar’s efforts to strengthen its hospitality sector. By enhancing its hospitality infrastructure and offering world-class experiences, Qatar is positioning itself as a competitive destination for tourists from around the globe.
For a detailed perspective on the property market, visit: Qatar - Real Estate Review Q2 2024
