Doha, Qatar: Around 1,200 hotel keys are in Qatar’s pipeline for end of this year, with majority being in four and five star category.
The number of hotel keys in the country was at 29,400 keys which were delivered by the end of 2021 and reached to 37,600 keys in 2022. Meanwhile, Qatar’s hotel keys stood at 39,200 in 2023 and totaled 41,800 in last year, according to latest Real Estate Research Fourth Quarter by ValuStrat.
Tourism reached record highs, surpassing five million visitors during the fourth quarter, up 25% annually, primarily driven by GCC travelers, noted Anum Hassan, Head of Research in Qatar at ValuStrat.
As a result, hotel occupancy climbed 15% yearly to almost 70%, while key performance indicators such as Average Daily Rates (ADR) and Revenue Per Available Room (RevPAR) improved by 5% and 21% YoY, respectively,” she added.
Over 1,200 hotel keys are set to enter the market in 2025, with the majority concentrated in the 4-star and 5-star segments. The new hotels inaugurated in Q4 include The OQ (142 suites) in Lusail’s Waterfront district, West Walk Retaj (265 rooms) in Al Waab, and The Muse (61 keys) in Fox Hills South.
The total hospitality stock estimated by Qatar Tourism was 39,828 keys. Around 67% of the total stock comprised of 4-star to 5-star hotels, whereas 7.5% was classified within the 1-star to 3-star category, while the remaining 25.5% consisted of hotel apartments.
From January to December around 43% of foreign arrivals were from GCC countries, while 21% from other Asian including Oceania countries, 8% Arab, 3% Americas and 2% were from African countries.
For 2024, the Average Daily Rate (ADR) was QR428, an increase of 5% YoY. Whilst the Revenue Per Available Room (RevPAR) was QR285, marking a rise of 21%.
The ADR for 5-star hotels was QR602, while the ADR for 3 and 4-star hotels was QR193 and QR240 respectively.
Average hotel occupancy was at 67%, an increase of 15% yearly. Qatar’s event calendar featured a diverse mix of sports, F1, international concerts, MICE gatherings, and local festivals, contributing significantly to the country’s tourism activity.
The latest report on Qatar real estate market further noted that the office market remained steady, though select prime locations saw slight declines in rental rates. Retail performance followed a comparable trend, with corrections contained within 5%.
Approximately 114,000 sqm GLA was introduced during the quarter, bringing the total supply to 7.3 million sqm GLA. Key additions were from a Lusail Plaza Tower and an office building in Fereej Al Soudan.
Grade-A office inventory was concentrated in Doha municipality, accounting for 60% of the total supply, while Lusail contributed an additional 40.2%. Estimated 180,000 sqm GLA is expected to be delivered in 2025.
The countrywide office occupancy ranged from 60% to 65%, with higher rates in prime areas like Msheireb Downtown, West Bay, and Lusail Marina. Citywide office rents averaged QR65.5 per sqm, stable compared to the previous quarter but down 2.2% YoY.
