The hospitality industry in Qatar is expanding rapidly, with an estimated 5,000 keys expected to be turned over in 2024 and 2025.
According to Real Estate Research First Quarter 2024 by ValuStrat, the hotel industry had an 11 percent yearly growth in the Average Daily Rate (ADR) to QR480 and a 53 percent increase in Revenue per Available Room (RevPAR) to QR361 in the first quarter (Q1) of this year.
Hotel occupancy over the same period was 75%, indicating a 38 percent year-over-year (YoY) increase. ADRs ranged from QR250 to QR300 for 3 to 4-star hotels, and from QR645, for 5-star hotels.
According to Qatar Tourism, there are 39,715 keys in the overall hospitality stock, of which 74% are hotel rooms and 36% are hotel/serviced apartments. Sixty-seven percent of the hospitality stock is categorized as 4 to 5-star, and the remaining 7 percent is categorized as 1 to 3-star.
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Three major new hotel openings were the three-star Millennium Place (150 keys), the three-story Rixos Premium Qetaifan Island North (378 rooms), and the three-story Riviera Rayhaan on Salwa Road (185 keys). A posh desert resort at Ras Abrouq was also opened by Qatar Airways in association with Our Habitas. There are 42 villas on the property, with one to four bedrooms in each.
By 2030, Qatar hopes to have three times as many tourists—that is, six million. In order to sustain occupancy rates and sustain revenues, the growing hotel industry and related F&B businesses will depend heavily on Qatar to considerably increase tourist numbers in the near to medium term.
The World Bank maintained its projection of Qatar’s real GDP at 2.1 percent for 2024, while the International Monetary Fund (IMF) predicted a growth rate of 2 percent for the country’s economy.
Over 1.6 million international arrivals were recorded in the first quarter of this year, representing a 40.1 percent annual increase.
The AFC U23 Asian Cup and the MotoGP-Qatar Airways Grand Prix were held in Qatar in Q1, which increased demand in the hotel industry. Also opened in Qetaifan North, Lusail, is the Meryal Waterpark. The attraction takes around 160,000 square meters.
