Quarterly Report Qatar Q1 2024: Hospitality Market Overview – Cushman & Wakefield Qatar

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May 12, 2024

Quarterly Report Qatar Q1 2024: Hospitality Market Overview

Significant growth in tourist arrivals in January and February boosts hotel performance

The overall supply of hotel rooms in Qatar reached 38,000 in Q1 with the opening of new hotels including Rixos in Qetaifan Island, Millenium Place Hotel, and Riviera Rayhann. This reflects an increase in supply of approx. 45% in five years. The supply of hotel apartments has surpassed 9,000 units, more than 70% of which are located in West Bay.

Supply remains dominated by high-end hotels and luxury apartments. According to STR Global’s classification, more than 31,000 rooms are classed as upscale or luxury, which is largely equivalent to 4 Star and 5 Star hotels.

While the increase in hotel supply has led to concerns of oversupply, the hotel real estate sector in Qatar has received a boost over recent months with a significant upsurge in tourist arrivals to Qatar since January.

According to the Planning and Statistics Authority (PSA), the number of arrivals to Qatar increased by 78% in January and February from 2023. This was due to several major international events including the AFC Asian Cup, however, increasing arrivals was a continuation of a trend which saw strong growth in tourist arrivals throughout 2023, with more than 3.9 million visitors arriving in Qatar last year.

While the National Tourism Council’s official report has not yet been released, statistics released by the PSA indicate that the increase in tourism has resulted in significantly improved performance metrics for hotels in Q1.

Overall hotel occupancy jumped to 84% and 85% in January and February respectively – the highest level since 2015. The increase in occupancy has also resulted in an increase in the average daily rate. The ADR figures from January and February reflect an increase of 24% on 2023, and an increase of 14% on the twelve-month period leading up to the FIFA World Cup.

Average Daily Rates for January and February were QAR 498 and QAR 531 respectively, reflecting RevPARs of QAR 418 and QAR 453.

The boost in tourist arrivals and hotel performance in Q1 has illustrated the impact of Qatar successfully hosting numerous international conferences and sporting events in recent months. The AFC Asian Cup, and Web Summit were two significant events that attracted significant international interest. While the recent surge in tourist arrivals may not be sustained throughout the year, the completion of major tourism and leisure projects such as Meryal Water Park, which recently opened on Qetaifan Island North, will help to grow the leisure tourism sector and boost hotel occupancy in Qatar.

 

Cushman & Wakefield Quarterly Report Qatar Q1 2024

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