Doha: Demonstrating resilience despite the challenging situation, Qatar’s hotels have added around 1,400 hotel rooms in the first six months of the current year, according to a report released by real estate consultancy firm Cushman and Wakefield Qatar. The report expects Qatar’s hotel to add around 15,000 new rooms over the next 12 months.
“The supply of hotel keys in Qatar reached 29,688 by the end of June 2021. This reflected a 7 percent year-on-year increase. Almost 1,400 hotel keys were added to the market in the first six months of the year,” Edd Brookes – General Manager, Qatar & Head of Middle East, Cushman and Wakefield Qatar, noted in the report. “Based on projected supply for the FIFA World Cup in November 2022, Cushman and Wakefield expect in the region of 15,000 keys to be delivered in the next 12 months – representing an unprecedented increase in the supply of hotel accommodation,” he added.
In Qatar, luxury hotels dominated the hospitality market in terms of revenue and market share. Around 62 percent of hotel rooms (excluding apartments) are classified as 5-star. A similar share of room keys under development are also expected to be in upscale or luxury establishments.
The most significant delivery in new supply over the past two years has been hotel-apartments, which now comprise 8,020 keys – 27 percent of overall supply.
Overall occupancy rates, excluding rooms used for quarantine purposes, increased by 7 percent year-on-year over the first six months of the year. The increase in occupancy rates is also reflected in revenues, with Average Daily Rates (ADRs) increasing by 16 percent and Revenues Per Average Room up by 24 percent by the end of June. By June, average ADRs throughout the hotel sector had increased to QR438.
Qatar’s hospitality sector is expected to witness strong recovery in the coming months helped by further improvement in global and local factors.
“The sharp increase in supply is expected to put pressure on occupancy rates post-World Cup; however, the profile afforded by hosting the tournament, the development of significant tourism infrastructure, the ending of the blockade, and a rebound in global travel are all expected to underpin significant growth in tourism to Qatar in the coming years,” Brookes said.
