Doha: Qatar’s hospitality sector is witnessing a strong rebound with hotels seeing an increase in occupancy rates. Hotels have begun to see a rise in number of guests with gradual easing of COVID-19 related restrictions.
The total supply of hotel keys in Qatar reached 28,300 by the start of 2021, which represented an annual increase of 1,200 keys. There are approximately 20,000 hotel keys under construction and expected to be completed by mid-2022, said Cushman and Wakefield Qatar (CWQ) in its second quarter report ‘Qatar’s Real Estate Market Review’.
In hotel projects, the most notable new arrival to the market is Banyan Tree by La Cigale, a luxury hotel located in the landmark Doha Oasis development in the Msheireb District, noted the report.
The report said, “Average daily rates (ADRs) in January and February matched the equivalent levels for 2020 at QR361 and QR369, respectively. March saw a significant improvement in revenues, with average ADRs increasing to QR408. This reflected an increase of 8 percent on the previous month and a 48 percent increase on March 2020.”
The easing of COVID-related restrictions, the take-up of vaccines, and the resumption of diplomatic ties in the Gulf Cooperation Council (GCC) are all expected to boost regional travel, which will be a welcome development to the hotel sector in H2, it added.
“While we hope to see an increase in arrivals to Qatar over the next six months, the reintroduction of quarantine hotels to the open market and the completion of new supply will maintain pressure on occupancy rates and room revenues. The recovery in tourist numbers, post-pandemic, will rely on the delivery of new resorts, attractions, and leisure facilities,” the report said.
The rise in the occupancy rate and room revenues in hotels is the result of measures taken by the government, initiatives by hotels and increase in economic activity in the country.
Qatar began to ease its virus-containment measures on May 28, with the third of four reopening phases in early July. This has seen capacity restrictions loosened further in many settings, including public transport and restaurants, with children allowed in a greater number of venues. Google data shows mobility is now consistently in line with the pre-pandemic baseline. New infections had reduced to around 140 a day in July, from almost 1,000 a day in mid-April. The domestic recovery is expected to gain traction in H2 as the number of vaccinated residents increases.
